Ideally any business you buy needs to fit your own skills, lifestyle and aspirations. Before you start looking, think about what you can bring to a business and what you'd like to get back.

List what is important to you. It is useful to consider:

• Your expectations in terms of earning - what level of profit do you need to be looking for to accommodate your needs?
• Your commitment - are you prepared for all the hard work and money that you will need to put into the business to get it to succeed?
• Your strengths - what kind of business opportunity will give you the chance to put your skills and experience to good use?
• Location - don't restrict your search to your local area. Some businesses can be easily relocated.

Although, there are many national and local newspapers carry adverts for businesses and business premises for sale. Yet another option is available for you to Just advertise in BUYERS section of www.Sell2Cash.com, saying what you are looking for.

Other websites also offer databases of business brokers, who can also help you to find a good business opportunity for you. These act in a similar way to estate agents - they are experts in valuing, marketing and selling businesses. They can help you find the right business and can also put you in touch with possible sources of finance.

Don't forget word of mouth. Ask around among trade contacts, business associates, and at exhibitions and conferences.

Valuing a business can be one of the most worrying parts of buying an existing business.

A healthy business
To get a general idea of how healthy the business is, look at:

• the history of the business
• its current performance - sales, turnover, profit
• its financial situation - cashflow, debts, expenses, assets
• why the business is being sold

As part of your investigations, talk to the vendor and the business' existing customers and suppliers. They may be able to give you information that affects your valuation. They may also be able to give you general market information about conditions affecting the business.

For example, if the vendor is being forced to sell due to decreasing profits, your valuation will be lower.

Intangible assets
The most difficult part is valuing the intangible assets. These are usually difficult to measure and could include:

• the company's reputation
• the relationship with suppliers
• the value of goodwill
• the value of licences
• patents or intellectual property

You should consider how the value of these assets could be affected if you decide to buy the business.

Other considerations
The list below details other factors that will affect the value:

• stock
• assets
• products
• debtors
• creditors
• suppliers
• employees
• premises
• competition

Once you have considered all these factors you can then decide how much you want to offer, or whether you want to buy it at all.

If you do decide to make an offer, and agree a price with the seller, a period of time is allowed for you to verify that all of the information you have been told is accurate. This is known as due diligence.

Having done your research, you should verify the information you have been given about your prospective new business. A period of time is allowed for you to access its books and records. This is known as due diligence. It should give you a realistic picture of how the business is performing now, and how it is likely to perform in the future.

When to begin due diligence
Don't start due diligence until you've agreed a price and terms with the seller. For a down payment they may agree to take the business off the market during your investigation.

The investigation period is negotiable - but most small businesses need at least three to four weeks.

Where to get help
Ideally you should get accountants and solicitors to help you identify risk areas

Due diligence is about much more than the finances of a business. You need to come out of this period knowing exactly what you are getting into, what needs to be fixed, what it will cost to fix them, and if you are the right person to take on this business.

Key areas to cover are:

• employment terms and conditions
• outstanding litigation
• major contracts and orders
• IT systems and other technology
• environmental issues
• commercial management including customer service, research and development, and marketing

Information sources
Dig as deeply as you can and use whatever documents are available. For instance, if you're looking at employee records, you could check out:

• payroll records
• staff files
• copies of pension and profit-sharing plans, plus financial statements, if relevant
• employment contracts
• the staff manual
• union contracts, if relevant

You may also need information from external sources such as the landlord, tax office or bank.

There are regulations that govern what happens to employees when someone new takes over a business.

These apply to all employees when a business is transferred as a going concern, meaning employees automatically start working for the new owner under the same terms and conditions.

Employment tribunal awards
When you buy an existing business, you might decide you need to employ fewer staff. But be careful about making any changes, as an employee might take a case to an employment tribunal for unfair dismissal or unfair selection for redundancy. It's best to consult a solicitor before making any such changes.

Inform and consult employees
If you do want to discuss reducing employee numbers or reorganising staff, it's a good idea to do this once you've completed the due diligence period, but before you take over the business. As the new employer you should inform and consult all employees - including employee representatives - who may be affected

Pensions
As their new employer, you do not have to take over rights and obligations relating to employees' occupational pension schemes put in place by the previous employer. However, if you don't provide comparable pensions arrangements, you could theoretically face a claim for unfair dismissal.