For a business to sell in New York (or anywhere else for that matter), there has to be a seller - and a buyer. The buyer of today is a bit different than the one of yesterday's New York City. Today's buyer is not a risk-taker, cares about the financials, and seems to be very concerned about price. Unfortunately, business buyers have to understand that they cannot buy someone else's financial statements. The statements might be a good indication of what a new buyer can do with the business, but everyone executes things differently. It is these differences that ultimately determine how the business will perform . The price may not be the right question for the buyer to ask. What is usually the most important question is how much hard cash is required to buy it.

Today's buyer in New York is finicky, due in part to the fact that he or she is not a risk taker. Quite a few buyers enter the business buying process and when it comes time to execute the transaction, cannot make the leap of faith that is necessary to conclude the sale. The primary reason that buyers actually buy is not for the reason one might think. Money or income is about third, maybe even fourth on the list.

Buyers buy because they are tired of working for someone else. They want to control their own destiny. In some cases, they have lost their job, or are being transferred to a place that they don't want to move to, or are very unhappy in their job. Surveys indicate that about half of the people in the United States are unhappy in their jobs. People buy a business to change their lifestyle. A recent newspaper article quoted a very successful business woman, who left her job and bought a book store because she was "looking for a change, a way to be more rooted and be at home more."

The make-up of a typical buyer

The typical New York small business buyer usually has many of the following traits:

• 90% are first-time buyers, they have never been in business before.
• Almost all of them are looking to replace a job. Business brokers primarily sell income substitution.
• Most buyers will have about $50,000 to $100,000 in liquid assests to use as a down payment.
• Most buyers are looking at businesses priced between $100,000 and $250,000.
• Most buyers will not have sufficient funds to pay cash for a business.

Obviously, many other types of people go through the process of looking for a business. However, those buyers who will eventually purchase a business have most of the characteristics outlined above. Going a step further, the serious prospective buyer usually possesses the attributes described below:

Who is a serious buyer?

• Has the necessary funds and they are readily available
• Can make their own decisions
• Is flexible in the type and location of a business he or she will consider
• Has a realistic and sincere need to buy
• Has a reasonably urgent (within three to four months) need to buy a business
• Is cooperative and willing to listen

Sellers should take a hard look at those who express interest in their business. If the prospect has very few of the above traits, perhaps the seller should move on to the next potential buyer. On the other hand, if you are a buyer, take a second look at the traits of the serious buyer. If you don't have many of them, you may not be as serious as you think. You might want to rethink the reasons for owning a business and be sure that this is the right decision for you.