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If you are looking to buy a business, you must first look for the bargain which will allow you to profit in the future. As many legendary investors say, "The money is made on the buy."

The basic principle of buy low, sell high applies to buying a business. Look for a business with untenable short term debt or cash flow problems that threaten it in the short term without affecting its long term viability. Be sure to go over the financial sheets and make sure that the business has a method of making money that will continue to be a competitive advantage in the future.

Businesses lose money because they do not keep up with current trends. Be sure that any business you buy is compatible enough with current trends to be updated.

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14y ago

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