How to Buy a Business While Also Moving Homes
Guest article by Brad Krause
Buying a business is a major commitment, financially, emotionally, and practically speaking. The same is true of buying a new home. If you’re thinking of undertaking both of these tasks simultaneously, you have a lot of work to do. The key to success is advanced planning. By doing your due diligence and thinking strategically, you can buy a business and a home at the same time, minus the stress. Read on for a step-by-step guide from digital content creator Andrea Sturdivant on buying a house and buying a business within the same timeframe.
Determine What Kind of Business You Want to Buy
First, you have to decide what kind of business you want to buy. There are many factors to consider, such as your experience and expertise. For example, if you want to buy a digital marketing agency, ideally, you’ll have experience in the digital marketing field. Alternatively, if you want to start an ecommerce clothing store, retail expertise is useful. Before you start house-hunting, focus on the business side of things. Logically, if you buy a brick-and-mortar business, you’ll want to ensure your new home isn’t too far away from it.
Familiarize Yourself with the Business-Buying Process
Buying a business is a major endeavor. Luckily, there are services that allow you to research businesses that are for sale by searching by state, country, and category. You can also connect with business brokers who are professionals who guide you through the entire business purchase process, explaining how it works, and helping with the paperwork.
You may find that an advanced degree helps you with this transition because there is quite a bit to learn. An MBA – Masters in Business Administration – can teach you skills from managerial accounting to marketing, and from data analysis to strategic planning. And there are many programs that are completely online, which makes it easier to fit them into your already busy schedule.
Set Up Your Business Before Buying a House
Once you’ve found a business you think you want to buy, you can take care of the various administrative steps needed to close the deal. Again, it’s best to check these items off your to-do list before you move on to buying a house, a process that has its own administrative hurdles to tackle. Do your due diligence when preparing to pay for a business. Find Law provides a guide to the types of documents you should review, such as the company’s Articles of Incorporation, list of shareholders, list of assets and intellectual property, and more.
Calculate Business Overhead Costs and Budget Accordingly
Once you’ve purchased your business, you can start to think about purchasing a house. However, keep in mind that running a business requires money. You don’t want to cut into your operating funds because you’ve put more than you should towards a property. To avoid this scenario, calculate your business’ overhead costs first. Start by listing all of your business expenses, then adding the overhead costs, and finally calculating the overhead rate. If you have trouble with this step, consider hiring a bookkeeper for assistance.
Write a List of Your Needs and Wants in a Home
Finally, with your business basics taken care of, you can start looking at houses. Hang on! Before you begin scouring the real estate market, make a list of what you want versus what you need in a home. For example, if you’ve purchased a brick-and-mortar business, you likely want to ensure that your new house isn’t too far away, so location is a big consideration. Breaking down your wants versus needs when property hunting can help you further formulate what you’re looking for.
You should definitely factor cost into this need/want analysis. You may find that, at least at this point in your business acquisition process, it’s more financially beneficial to rent a home instead of purchasing one. If you chose to buy a brick-and-mortar business, then an apartment might allow you to get closer to its location as apartments tend to be closer to commercial areas. Apartments in Charlotte, North Carolina start at about $1,500 and often come with amenities such as pools, gyms, and even business centers that can be helpful for work from home business situations. And renting means that if something breaks, the manager arranges for everything to be handled, which takes a lot of responsibility off of your shoulders during this busy and exciting time.
Get a Real Estate Agent to Help You Find Your Property
Once you have a better idea of what you want in a property, it’s time to start house-hunting. Since you’ll want to save time and energy to focus on your new business, it’s best to work with a real estate agent when buying a house. They can take your list of criteria and do the grunt work of finding houses for you. Real estate agents can also get you first looks at new properties as they come on the market, thanks to their professional connections, and can often negotiate better deals when concluding contracts.
Keys to finding a skilled realtor: check in with friends and family for recommendations, ask around with professional realtors, or use a matching service.
Get Your Financial Paperwork for House-Buying in Order
In a crowded real estate market, having pre-approval for a loan helps you stand out from the crowd and look like a more serious buyer. To get your finances in order when buying a house, start by looking at your credit report. You may want to improve your current credit score, so you can get better loan terms and lower interest rates. Then, calculate how much you can afford using an online mortgage calculator. Finally, provide the documents needed to secure pre-approval for a loan, such as pay slips and tax returns.
Plan a Seamless Move to Your New Home
Once you’ve closed the deal on your home or secured your new apartment, you can start planning your move. Begin by decluttering your current space, getting rid of items you no longer use. You can donate, sell, or trash items depending on the condition they’re in. Decluttering means you’ll have less stuff to move later, which can save you time and money. Once this is done, go ahead and start packing, organizing your belongings on a room-by-room basis. Finally, hire reliable movers. You can search online for moving companies and read the reviews to find the right one. Be sure to look for ones who are licensed and insured to take care of the actual transition.
Set Up a Functional Home Office
Once you’re moved into your new home, you can set up a home office where you can easily oversee your new business. Choose a room that doesn’t get too much foot traffic. For instance, steer clear of areas like the kitchen or front hallway, where people are always coming and going. Once you’ve selected a space, get the must-have items you’ll need for a comfortable office. This could include ergonomic office furniture and the necessary technology. Also, make sure your office has sufficient lighting, which boosts concentration.
Buying a new house and a new business at the same time is a major undertaking. You want to take a strategic approach to avoid any missteps. Tackle one thing at a time and keep a plan in place to keep things moving steadily. And don’t forget to take advantage of new resources as you need them, whether it’s an MBA from an accredited online university or coordinating with digital content creator Andrea Sturdivant to drive your marketing strategy forward.