Owning and running a small business is quite different than working for a larger company. You may provide some new perspective but the principal requirement for success will be energy and hard work.

Think positive while buying a new business.

Provide a resume and financial statement. Remember, the seller will most likely be your banker and will want to be convinced that you can run "his" business successfully, protect the employees, and pay down the note.

Just about anybody can buy assets, such as inventory and equipment. But you are buying a company. Focus primarily on the company's discretionary cash flow or EBITDA, i.e., what the business really earns now for the seller, then determine what it might earn for you in the future. Most good small businesses will be priced at two to four times cash flow.

Sellers deserve a fair price for the years they have spent building the business and its reputation, its market share and loyal employees. Be prepared to pay for such intangible factors, in addition to the value of the company's tangible assets. Smart buyers of successful companies rarely focus primarily on tangible asset value.

Some potential buyers have wholly unrealistic expectations as related to their own financial ability. Provide a confidential financial statement to the broker at the outset. Don't waste everyone's time if you don't have sufficient liquid resources to make the down payment, with something left over for working capital. Further, don't announce that you can enlist "investors" if you can't introduce them - and aren't able to demonstrate their level of potential commitment - up front. A good business will pay for itself out of its cash flow, i.e., by paying down the debt.

If you need third party advice before making an offer, use people with broad business perspective. Let attorneys advise on legal matters and accountants on financial matters and make sure that your attorney has solid business "deal making" experience. If not, his true cost to you could end up being more than his fee, attorneys and accountants work for you to tell them you want the deal to happen and that their job, while protecting your interests, is to figure out how to get the deal done.

Don't drag out your due diligence after agreeing on price and terms. Keep the focus on key business issues and avoid getting tangled up in minute. This is not the time for an "audit."

If there will be a landlord other than the seller, he usually will have little to gain by changing the status quo. Go to your initial meeting with him armed with your resume and financial statement.

He most likely will be an experienced professional, with a depth of knowledge both about the business in question and transactions in general. He should also have important access to potential lenders. Even though he is normally compensated by the seller, in truth he represents "the deal" and can help you as much as the seller. He will lower the stress level for all concerned.