Who’s Counting the Inventory in that Business you’re Buying and why it Matters- How to Buy a Business

Who doesn’t love coming in after hours and counting all the stuff on the shelf?

Unfortunately, most people who own businesses hate doing inventory.

It’s so distasteful that an entire industry has sprung up to do it for people.. these businesses are populated mostly by moles and other nocturnal creatures since inventory counting is mostly done overnight.

One local office here where I live hosts a team of inventory counters who assemble at dusk, ride a bus together to their temporary haunt, then scurry and scratch their way through mountains of precious goods.  You can almost hear them saying.. ‘oooh my precious!’

Of course, if a small business owner wants to avoid the effort and cost of counting inventory, they can just make up the numbers.  And many do just that!

Then there are the other, more treacherous reasons for making up inventory figures.

So what does this mean for someone trying to buy a business?  What hazard does poor inventory counting create to the investigative small business buyer?

Watch this video as I explain the relationship between inventory and COGS and why it’s so important and what you can do if it’s all messed up: https://youtu.be/6KVAKRjTUtY

Do you have a business to sell?  Visit www.HowToSellMyOwnBusiness.com and learn how I can help you sell.

Want to buy a business in the next year? Join the 2018 Buy a Successful Business Accelerator Program: http://www.investlocalbook.com/p/2018-group.html (Still spots left as some successful appliants haven't paid their registration fee yet.)

-or- join the legions of small business buyers who are learning what they need to know so they can avoid a bad deal.  They’re taking my online course at www.BusinessBuyerAdvantage.com

FREE- Download a copy of my e-book; 12 Things to do Before You Consider Selling Your Business. (No, I will not put you on an e-mail marketing list)

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Thank you and I’ll see you next time.