Buying a business for sale in Idaho can represent a great opportunity for investment. Buying an established business usually is much safer financially and more profitable than starting a new business because an existing business already has an established customer base, source of revenue and business operations. An existing business also may own valuable patents or copyrights.

It is often more expensive to buy an Idaho business for sale than to start a new one, although it is generally easier to obtain financing for an existing business. Investors tend to be more comfortable with a business that has a proven performance.

There are three primary actions to perform before buying Idaho businesses for sale:

1. Review the tax returns and financial statements over the last few years before you enter into a business sale. Idaho businesses can measure their growth potential with actual experience rather than conjecture.

2. Examine the current profits of the business for sale. Idaho businesses will have expenditures such as employees’ salaries, utilities and insurance that you must deduct from the sales revenue.

3. Inspect the operations of prospective business opportunities. Idaho businesses may have obsolete inventory, dissatisfied employees or outdated distribution methods.

Action Steps
The best contacts and resources to help you get it done

Locate an Idaho business for sale

Many websites offer listings of Idaho businesses for sale by owner. These businesses should show the location, asking price and cash flow, among other details.

I recommend: You can search BusinessMart.com for businesses by state and you can further refine your search by specifying the type of business you seek. The advanced search option at BizQuest.com will let you select the type of business, city and length of time on the listing, among other parameters.

Find Idaho business brokers to assist you in the purchase process

Idaho business brokers can identify businesses that are clearly undesirable and help negotiate a price on the best candidates. A business broker also will help you obtain any licenses and permits that Idaho requires.

I recommend: Arthur Berry & Company is in Boise and specializes in helping those who are buying or selling a business in Idaho. The Bristol Group, also in Boise, combines local expertise with a national presence when brokering businesses in Idaho.

Hire a Certified Public Accountant when considering an Idaho business sale

A CPA will need to review the financial records of any business in which you are interested. Additionally, a CPA can ensure that you file any required legal documents.

I recommend: Neel and Associates in Twin Falls is a full-service accounting firm that provides business valuations for individuals and businesses. Thomas Collins is in Boise and specializes in business valuations in a variety of industries.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Determine the owner's reason for selling before buying an Idaho business for sale. The owner may no longer be interested in running the business or there may be legitimate financial reasons for putting it up for sale. You also will want to review the marketing strategy for the business because many lagging businesses can be revived with proper advertising.