Don’t Buy a Job — Buy a Business That Grows

To make a smart investment, it’s critical to evaluate the opportunity like a business — not just a source of income. Here’s how to ensure your acquisition is strategic, sustainable, and profitable.

1. Understand the Business Model
What drives revenue and profit? Is it high-volume/low-margin or high-touch/high-margin? Know what you’re buying:

• Primary revenue streams
• Customer acquisition strategy
• Recurring revenue vs. one-time sales

Determine if the business model is resilient — and capable of scaling beyond the current owner’s effort.

2. Analyze Customer and Lead Flow
Where does business come from?

• Word-of-mouth and referrals
• Digital marketing and SEO
• Repeat customers and long-term contracts

A business that relies heavily on the owner’s relationships or reputation may not transfer well. Look for a systematized approach to generating leads and retaining customers.

3. Evaluate the Financials Like an Investor
Dig deep into the numbers:

• 3 years of revenue and net income
• Gross margin trends
• Operating expenses and overhead
• Cash flow and working capital needs

Clean, consistent financials are essential for securing financing and ensuring long-term profitability.

4. Assess Operations and Systems
A strong business runs on systems, not just people:

• Standard operating procedures (SOPs)
• Inventory and supply chain management
• Software tools (CRM, POS, ERP, etc.)
• Employee training and accountability

A well-documented business is easier to step into — and scale.

5. Know the Owner’s Role
If the owner is the sales engine, operator, and administrator — that’s a red flag.

• Will key employees stay on?
• Is knowledge institutionalized or tribal?
• Is there a transition plan?

You want a business that can run without the owner — not just survive.

6. Is It Bankable?
Financing is a major part of most business acquisitions. Make sure the business qualifies for SBA or conventional financing:

• Adjusted net income with clear add-backs
• Reasonable valuation (not inflated by goodwill)
• Supporting documentation for revenue and expenses
• Debt service coverage ratio (DSCR) above 1.25x

A bankable deal is one that supports its own debt and working capital needs.

7. Plan Your Exit — Before You Buy
Smart buyers think ahead. Ask yourself:

• Can I grow and scale this business?
• Is it a strategic fit with other holdings?
• Can I exit in 5–10 years via sale or succession?

Your exit strategy should inform how and what you buy today.

Final Thought: Buy a Business, Not a Burden
At US Professional Funding, we help entrepreneurs finance smart acquisitions across all industries. From due diligence to deal structuring and lender introductions, we help you approach each opportunity with clarity, confidence, and capital.

Thinking about buying a business?
Let’s talk. We’ll help you evaluate the opportunity, secure financing, and build a business that delivers growth — not burnout.