Buying a small business for sale in North Dakota 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 a business for sale in ND 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 when you buy a North Dakota business:

1. Review the tax returns and financial statements over the last few years for the business for sale. North Dakota businesses can measure their growth potential with actual experience rather than conjecture.

2. Examine the current profits for the small businesses for sale. North Dakota 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. North Dakota businesses may have obsolete inventory, dissatisfied employees or outdated distribution methods.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 a North Dakota business for sale

Many websites offer listings of companies for sale. North Dakota listings of businesses for sale should show the location, asking price and cash flow, among other details.

I recommend: Go to BizBuySell and select North Dakota as the business location. You can also narrow the search parameters by selecting the business category and asking price range. BizSale.com lists North Dakota businesses for sale and includes a separate database of unique businesses for sale and businesses you can buy for less than $100,000.

Find business brokers in ND to assist you in the purchase process

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

I recommend: AdMed Consulting is in Bismarck and specializes in acquisitions in the occupational health industry. Veracity is in Fargo and concentrates on first-time buyers of businesses.

Hire a Certified Public Accountant before purchasing a business for sale in North Dakota

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: Brady Martz has two offices in North Dakota and specializes in business valuations for closely held businesses. Power Financial is in Bismarck and provides business valuation services for a variety of needs.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Determine the owner's reason for selling before buying a North Dakota 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 will also want to review the marketing strategy for the business because many lagging businesses can be revived with proper advertising.
• •  Review the physical assets of the North Dakota business for sale. You will need to know if the office equipment, machinery and other property is actually in working order. You will also want to inspect the building itself to know if it meets the health and safety standards that North Dakota requires.