What should i look into when buying an established business???

Question

its a driving school...

Answer 1

First and foremost profit and loss statements and right up there with those is it a business you "REALLY" want to do. If it will start to bore you after several months then I suggest you keep looking for a business that will spark a passion in you. If your heart is not in the business you will never succeed.

Answer 2

How long has owner been involved with the school?

Gross Sales over the past 2 years?

Has the business been profitable?

What are the expenses?

Are there any outstanding loans for the business? If so, are they going to assume them? If not, details.

Any regular customers? Are they on contract?  

What are the receivables typically? 30 or 60 days out?

Business Cycles? Seasonal?

How many hourly employees?  How many salaried?

How is it marketed?  

Taxes up-to-date? Typically, how much were they?

Is there a business plan?

Can owner provide any projections? (they will lie to you anyway)

How much cash in hand would be needed after the sale to operate after purchase?

Is there a website?

In what capacity would the owner be willing to stay on until new owner is up and running?