What To Look For When Buying A Home Care Business With Special Guest Jen Ramos

What to look for...

Regardless if you're buying or selling it is essential you know the key elements to analyze in the process.

On todays' episode, we conclude our 4 part series with the incredible Jen Ramos from JR3 Consulting Group.

Are you looking to buy a home care business? If yes, then you need to listen to our incredible guest Jen Ramos, who does this every day, in and out, helping owners and entrepreneurs like yourself to buy and sell home care businesses.

What should you look for when looking to buy a home care business?

So when you're looking to buy, it's interesting too, because this is kind of twofold for a seller's point of view.

1. The Financials

When you're looking to buy a home care business out of the gates, the first barrier to entry, to even see if this business is even viable for you are the financials and making sure that they're clean financials and what I mean by clean is all the financial statements are very easily read.

You can see what the profits are very clearly. You can see what expenses are going out. For payroll, those are the biggest expenses.

Marketing expenses, like everything is very concise, very clean books is really what you're looking for as a buyer. If they're sloppy books, chances are that's very telling. I'm just going to say this because I know from experience that if the books are sloppy, chances are the operations are too.

So that's a red flag.

Not necessarily in every case, but in most cases. And so also looking at the operations.

Operations

• Are there systems in place?
• Are there procedures in place?
• Are employees following those systems and procedures?

So you're looking at that as well.

2. Evaluations

You're also considering the price of the business that's listed. If the price doesn't make sense, which is why I'm a huge advocate for sellers and buyers getting evaluations done on the business through a professional.

They will give you a range in price point of what the company is valued at based on the return on that investment. The rule of thumb is that return on the investment should be within three years. Anything more than three years, the business is overpriced. It just doesn't make sense.

So getting evaluation done is really important and probably the second thing you want to do after you think of a game plan post sale.

In Conclusion

The other main factor when looking at buying a business is how much the business owner is working in that business and what their quality of life is. The bottom line is that's going to be yours, you know what I mean?

At least in the short term, while you're learning the operations of this business and how to run this home care, or if you're acquiring one, you are going to put a lot of blood, sweat and tears in it just to get it to where you need it to be.

So really look at the quality of life of that business owner. And if they're running ragged, you probably want to not pursue that opportunity unless there are other factors going on for you and believe you could make it work.

How To Get In Touch With Jen

https://jr3consultinggroup.com/

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