6 Red flags of a business to avoid buying

[Augusta]

if you are not ready to start a business you can buy a business that the owner is willing to sell. But you need to really assess the business to avoid buying a dead business that you might not be recoup your money in the long run.

The following red flag should help you stay off buying a dead business


Avoid buying a business that the Start-up work is incomplete. It means that the business is not a 'going concern' and wouldn't last for a long time

Be wary of a business that the Outstanding debts to pay is very high. Be sure to know about all the debts before buying

It is a red flag when a business was run on Loans or investor funding.. You need to think about how else you can be funding the Business

Another red flag for a business not to he bought is when the business Customers were loyal to the seller, and not the business.

A business that had a long-term contracts with suppliers, who are unreliable or expensive is a huge red flag. it shows the business wouldn't have been a success after all.

Another red flag you might not consider buying a business is a business with high level of Ineffective human resources.