1/ Determining your investment
Usually, the minimum down payment made by the buyer is 30% of the purchase price.
For example, if the business purchase price is $100,000 and the loan amount is $70,000 (70%), then the buyer’s down payment needs to be $30,000 (30%). Other possible expenses are inventories, supplies, escrow fees, license and permit fees, franchise transfer fees (if applicable), etc.
2/ Find the right business that fits your needs
After you decide on your investment amount and criteria of business, you will need to find the right business that fits your needs. You can search for business for sale on websites like www.businesstrade.com.au, or through local business brokers or real estate agents. If you find a business that you want to purchase, you will need to evaluate the business through the current owner’s income information and your projected income for the short term and long term.
