What Do You Need To Do When Buying a Business?

How do you create £130,000 in monthly sales—instantly?

That’s exactly what I’m going to cover in this article today.

Smart entrepreneurs don’t wait years to build a big business—they use this secret weapon to get there faster. They’ve mastered this strategy—and that’s why they succeed.

The 7 steps needed to buy a business include figuring out how to fund the purchase, finding the right business for you and one that will run without you, together with reducing your risk of failing. But these 7 steps also including deal struture, negotiating the deal, legal support and transition.

If you’re ready to be your own boss, and ditch your 9-to-5, buying a business is the way to do it.

But where do you even begin?

Learning theory from a book is useful, but experience is everything—you need real-world insights, not just words on a page.

And when it comes to business, there’s one key question you should ask:

Do you really need to be an expert in an industry before buying a business in it?

The answer might surprise you.

Because, if you are more flexible in your approach, you’re more likely to win.

The business I bought was a fitted furniture business—an industry I knew nothing about before I owned it?

So, how did I pull this off? Because the business already had 27 employees, to handle the day-to-day operations.

The business already had…

✔ Fitters to install the furniture.

✔ Joiners to make the furniture in the factory (yes, a full-on factory—and I’d never run one before).

✔ Designers to create the furniture plans.

✔ A production manager to turn designs into reality.

✔ A showroom team to sell the furniture.

✔ And, even an accounts team to keep the finances in check.

So, you might ask, what did I actually do?

This is the key question.

But here’s the thing, if you’re asking this, you get it.

You don’t need to be an industry expert to buy a business. The employees who are running it, are the experts.

But here’s the thing, this approach forces you to think bigger.

And, you’re no longer tied to industries you’ve worked in, you can buy any business, which means you have way more options.

But the best part…you’ll start finding great deals faster than ever.

I get that this isn’t for everyone. Going from upper management to business owner is a huge step. And doing this in an industry you know nothing about? Is an even bigger leap of faith.

I get that, but, think Richard Branson.

Sure, he launched Virgin Atlantic, but how much do you think he really knew about running an airline before he started?

Do you think he went into it, planning to pilot the 747s himself? Of course not.

His mindset was simple—build a business that’s better than the competition.

He didn’t dive into the day-to-day operations; he focused on the bigger picture. Instead of working in the business, he built a team to run it for him.

And that’s exactly what I’m suggesting you do.

But with one key difference, you’re not starting from scratch. You’re going to be buying a business—but not just any business, a million-pound business.

Scary, right? I was scared when I did it.

But let me ask you this:

Is it a good idea to buy an existing business?

If you had the choice between starting a business from scratch or buying one that already has sales of £1.6 million, which would be easier?

A startup could take years to hit £1.6M in sales, right.

But how long would it take to grow a £1.6 million business to a £2 million one? I agree, that’s a 25% increase.

A challenge, for sure, but a far more achievable target, right?

This one thing was the ultimate cheat code that fast-tracked me to owning the biggest business I’ve ever had.

This is the key step that will fast-track you to owning a business.

And, I’m just going to give it to you. This is my full roadmap.

I break it down into 7 clear steps, and picture these as stepping stones to your success.

What are the 7 steps in buying an existing business?

You need to complete these 7 steps to take ownership of a business.

Or you’ll never be able to quit your 9-5 job, and you’ll never be your own boss.

Okay, so the first major hurdle…how do you afford this, and what if the bank rejects you?

Which leads us to the first step, which is…

Step 1: Figuring out how to fund the purchase, without piles of cash!

If these questions are on your mind, here’s what you need to understand:

You’re not buying a business with your money—you’re buying it with the business’s future cash flows.

It’s about what the business can afford, not what you can afford.

Most people assume they need a huge savings pot to buy a business—but that’s not true.

The key isn’t how much you can afford to buy a business…it’s about making sure the business can afford to pay for itself.

How?

By Structuring the Deal Smartly:

To find a business that can do this, you need to:

1. Ask the seller lots of questions – Your goal isn’t just to gather facts; it’s to uncover ways to structure the deal creatively.
2. Use seller finance – Instead of paying everything upfront, ask the seller to let you pay over time, using the business’s own profits.
3. Leverage asset finance – If the business has valuable assets, like equipment, property, stock and accounts receivables, you can borrow against these instead of using your own savings.
4. Use deferred payments – Negotiate a deal where you only start paying after certain milestones. I recently helped sell a business where the seller agreed to receive lump sums on certain dates – the first one being after two years of ownership. By the way, this business sold for a cool £1.6 million.

This is why I developed the Buying A Business Software—it’s designed to help you both evaluate a business’s value and work out how to fund the purchase.

So here’s the thing, find the right business first—financing comes second.

But what is the right business, and do you have to work 24/7 when you buy a business?

Which leads us to…

Step 2: Buy a Business That Runs Without You

The goal must not be to own a business and get trapped in it.

The goal should be to own a business that works for you—one that runs smoothly, generates income, and doesn’t demand all your time.

This is about buying freedom, and not buying yourself a job.

• Only look at businesses that have a strong team? You need a business with key employees who can run the business for you.
• You want a running business, not a rescue project.
• You will be replacing the seller, so make sure the business doesn’t rely on them to function. If the business can’t function without them, it won’t function without you either.

But what if you mess this up or what if customers leave, I hear you ask?

This leads us to…

Step 3: Reduce Your Risk of Failing

It’s natural to fear failure, but the smartest buyers take steps to reduce their risk.

To do this, I suggest you:

• Look at businesses with consistent profits and a strong customer demand.
• Only look at businesses in a stable or growing market? Avoid industries in decline.
• Only look at businesses with sale of over £1 million, and profits over £100,000. Buy a cash flowing business, not a money pit.
• The business should have its own customer brand loyalty. If all the relationships are with the seller, you might struggle to keep those customers after buying.
• Avoid costly mistakes by checking everything carefully during due diligence. Know what you’re buying before you commit. In fact, my course teaches you how to do due diligence yourself, helping you cut down on the cost of hiring expensive accountants.
• Take a step back—does this business need industry expertise, or can it thrive under a strong leader with transferable skills?

Consider what I managed to do.

I bought a fitted furniture business

I had zero experience in the industry and yet, I made it work.

Or, if you prefer, look at Richard Branson.

He set up Virgin Atlantic without ever running an airline before.

• Neither of us needed to be industry experts—we just needed the right team and the right strategy.
• The real question isn’t “Do I have experience in this sector?” but “Can I run this business like a business owner, not as a technician?”
• So, before you count yourself out from this approach, ask yourself: Do I need to know how to build furniture or fly planes, or do I just need to know how to run a great business?

I highly recommend The E-Myth by Michael Gerber—it explains perfectly why a business should be structured to run independently of the owner.

Now, you’ve nailed the type of business you should buy, but where do you even start when you have so much choice.

Which leads us to…

Step 4: Finding the Right Business for You

Don’t get lost in endless listings—be specific about what you want.

This is where you begin:

• Brokers and online websites like “Businesses For Sale Dot Com” list businesses for sale, but the real gems are often found off-market—where you have more control and less competition from other buyers.
• Contact business owners directly—your letter might land on the right desk at the perfect time, and the right owner could be grateful you reached out.
• Let people know you’re looking, and you’ll be surprised how many hidden opportunities start appearing. Once you put it out there, you’ll be amazed at the opportunities that come your way.

But you may ask, what’s a fair price, and how do you negotiate and structure the deal?

Which leads onto…

Step 5: Deal Structuring & Negotiation

Before you can even begin to structure the right deal with the seller, you first need to understand their reason for selling.

• Start by asking the seller lots (and I mean lots) of open-ended questions. The more they talk, the more you’ll learn.
• Pay close attention to their words and what’s left unsaid. Understanding their real needs will help you shape a deal they’re happy to accept.
• A seller’s wants are negotiable, but their needs are what really matters—find those, and you can structure a deal that works.
• If you want to sharpen your negotiation skills before buying a business, read “Never Split the Difference” by Chris Voss.

I know how buying a business can feel overwhelming at times, especially when you’re learning as you go. But my free community (included with my online course) gives you a space to ask questions, get real answers, and build confidence as you move forward.

But let’s assume you’ve found a business, what happens next.

What contracts do you need in place?

This leads to…

Step 6: Legal & Compliance Headaches

Don’t let legal worries stop you—get the right expert guidance.

Do I need a solicitor to buy a business?

While it is possible to buy a business without using a solicitor (I know this because I recently sold one this way, and the buyer didn’t use a solicitor either), I wouldn’t necessarily recommend it.

But what I do recommend is to:

• Find a good solicitor as not all solicitors are the same—choose one with real experience in business acquisitions, not just property transactions.
• Stay away from hourly rates—agreeing on a fixed price keeps costs predictable and ensures your solicitor stays focused on completion.
• Make sure the seller also uses a good commercial solicitor—and that they’re on a fixed contract price too. This prevents delays, avoids unnecessary costs, and keeps everyone focused on getting the deal done.
• Create a Heads of Terms (or Letter of Intent). This is a simple but powerful way to put down in writing what you and the seller have agreed. You can then send this document to your solicitor to draft the Sale and Purchase Agreement.

But what happens on the day you take over the business?

Will customers and suppliers stay.

These questions take us to the final step, which is…

Step 7: Transition & Support

Like you, I was worried on the day I took over the business I bought.

But I quickly realised I didn’t need to be.

The employees were incredibly helpful and supportive, and they knew the business inside and out.

So, here’s what I’d say to help you think about transitioning into your new business:

• Build in a transition period—so the seller helps you to settle in.
• You won’t be alone—the team will already be in place, and they will know how things run.
• You won’t need all the answers on day one—listen, and lean from the employees.
• You’re not buying a job, you’re buying a business. The employees will handle the day-to-day—you’re there to lead, make strategic decisions, and trust the systems.
• Change can make employees anxious, but you can ease their fears. Be open, communicate clearly, and show them they have a secure place in the business’s future.
• Keep paying the suppliers on time, and they’ll have no reason to stop supplying your new business.
• If you buy a business with a loyal customer base that trusts the brand—not just the owner—and you maintain great service and quality, there’s no reason for them to leave. In fact, they don’t even need to know the ownership has changed.

Consider this, when I sold one of my businesses, one of my top priorities was making sure the new owner would look after my employees the way I did. Sellers care about who takes over, so make sure your values align.

If you align with the seller in terms of core values, you’re likely to connect well with their employees too.

Which means they are more likely to stay, post take over.

And that’s a key part of a smooth transition—when employees feel comfortable with you, they’re more likely to stay and support the business moving forward.

So, here’s what we covered:

1. You don’t need to be an expert in an industry to buy a business—employees already running it are the experts.
2. Buying beats starting—it’s much easier to grow a £1.6M business than to start from ground zero.
3. Funding isn’t about your money—it’s about structuring the deal so the business pays for itself.
4. Find a business that runs without you—you want freedom, not another job.
5. Limit your risk—look for stable businesses with consistent profits and strong customer demand.
6. Find the right deal—the best opportunities are often off-market, so be proactive.
7. Master negotiation—understand what the seller needs, not just what they say they want.
8. Legals matter, but don’t overcomplicate it—get the right solicitor and use fixed fees to avoid delays.
9. The transition will be smoother than you think—employees, customers, and suppliers will keep things running if you handle it right.

So, what’s stopping you from owning a business? What’s holding you back from taking that leap of faith to becoming your own boss, and sacking your current one?

Tell me your biggest roadblock in the comments, and I’ll personally reply to each one.

If you want to know more about how seller financing works, watch this video next.

But if you want to discover how some of the world’s most famous billionaires bought their way to the top, watch this video next.

But if it’s inspiration you need right now, watch this video next, which is all about The Art of the Impossible: Entrepreneurs Who Pulled Off Unbelievable Deals—featuring legends like Richard Branson and James Dyson.

I hope this helps you on your journey to finding a business to buy, and if you have any questions on this topic about buying a business, or on any other aspect about the process involved in buying a business, please drop a comment below.

And always remember; no question is a stupid question.

If you don’t know it, you don’t know it, and by having the answer to a question you have, might be all it takes to move to the very next step in your journey to buy a business.