Buying a business?

is there a way to find out if the business you buy is making profit or not making profit

even for small businesses like convienent stores or flower shops?

Please don't take this the wrong way - but if you are not sure how to check the profitability of a business that you are thinking of buying, you REALLY do not need to be buying it.

It is a little bit like a suregon needing to ask if someone can tell him which lumpy bit the kidney is before he attempts to transplant it.

Mark

Have the books audited.

The Rabbi is correct, before buying a business and signing the contract you should have full access to all the business's financial records.......................

Cheers, ToNy!
"Success.Trail"

Like an earlier answerer, if you have to ask the question I'm not certain you should proceed at all. Still, here's some advice:

* You first should have a heart-to-heart talk with your accountant -- I assume you have a good business accountant -- about business profits and losses. A class at the local SBDC (Small Business Development Center) or community college in business structure/management would be a good idea, too.

* Then, as part of the due diligence process, have your accountant audit the business' financial records.

* Get help from a qualified business broker and CVA (certified valuation analyst), too. Your accountant should be able to make referrals.

I* f you don't have an accountant, or the one you have isn't able to offer much help, skip the idea of buying a business for now and search for a qualified accountant.

* You'll need a lawyer in this process, too. You do have an attorney experienced in business transactions, don't you?