David C Barnett Small Business and Deal Making M&A SMB Buy A Business Without A License WARNINGS
Nov 13, 2024
Can you buy a licensed business without a license? It depends on your location and the specific industry. The discussion dives into the risks involved, especially in sectors like plumbing and HVAC, highlighting local regulations and economic factors. Learn about the importance of having licensed employees and effective recruitment strategies to ensure smooth operations. The host also unpacks the complexities that come with acquiring smaller businesses versus larger ones and shares real-world examples to illustrate these points.
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Know Your Licensing Laws
- Understand the licensing rules and requirements are very different across states and countries.
- Always research your specific jurisdiction's licensing laws before buying a licensed business.
Leverage Licensed Expertise
- Hiring a licensed expert in the business can provide valuable industry knowledge.
- This person can help you plan operations, cash flow, and understand permit and inspection timelines.
Avoid Key Person Dependency
- Avoid buying a small licensed trades business dependent on one key employee holding the license.
- Instead, seek businesses with multiple licensed staff to reduce dependency and risk.