VR Steps to Owning a Business
1. Initial Consultation with a VR Business Intermediary
- To help analyze your skills, interests and financial needs
2. Selection of Businesses Best Suited to Fit Your Needs
- VR has a wide range of businesses for you to select from
3. Review Business Summary
- Basic Information about the Business
- Valuation of Business
4. Tours of Selected Businesses
- Tour businesses to meet Seller(s) and understand the complete opportunity.
- Always be accompanied by a VR Business Intermediary
5. Second Consultation with VR Business Intermediary
- Discuss visited businesses as to your likes, dislikes and concerns
- Review financial summaries of businesses toured that appeal to you
6. Meeting / Conference Call with Seller & Intermediary
- Ask Probing Questions
- Confirm that the Business is right for you
7. Make Proposal with Deposit Money
- Generally 5% - 10% of the purchase price
- Deposit money deposited by VR in a trust account
- Contingencies and conditions in offer may include:
a. Proof of sales and expenses
b. Training period from the Seller
c. Covenant not to compete (time and area)
d. Approval of franchise agreement, (if any)
e. Obtain an adequate lease
f. Obtain adequate financing
- Deposit money refunded to you if contingencies are not realized
- If you are satisfied with the business, your deposit money simply will become part of your initial investment in the business
8. In Depth Inspection of the Business ("Due Diligence")
- Review financial information provided by Seller
- Check furniture, fixtures and equipment
- Remove contingencies and obtain final approval from Lender, Landlord, etc.
9. Request Lawyer To Prepare Documents and Conduct Searches
- Request made only after Lender financing is approved
- Additional Deposit if any, forwarded to Lawyer
- Review all documents
10. Inventory Approved by Buyer and Seller
- Inventory to be counted by Buyer and Seller prior to closing
11. Closing - Congratulations you are now a business owner!