Businesses come in all shapes and sizes.
First of all, there are a number of different business models - SaaS, e-commerce, content/ advertising etc. Are any better than another?
Next, businesses operate in different industry verticals - automotive, fashion, Home and garden etc. Is one industry more profitable than another?
Businesses can operate in many countries - should you consider a business that only operates in a single country Vs one with multiple locations?
Businesses can also operate through multiple channels - FBA, eBay, branded e-commerce site etc. Should any channel be considered above others? Should any be avoided?
Thats before we have even got to the commercial side. High expenses, low revenue, low profit = pass - or not? Should you consider purchasing a low/ unprofitable business? It may seem a strange thing to say, however a careful review of expenses may reveal costs that you can easily slice away and deliver profitability. Is the marketing being conducted effectively? Is there any taking place at all? Are staff costs inflated (or even needed)? How tight are the COGs? How are products and services priced against competition? Are all the channels to market targeted and effective?
Businesses with history can appear a better bet - more data to assess true performance and value, products/ services/ suppliers honed to perfection over time etc; but don't discount the young businesses opportunities you see as they can represent as yet un-taped potential.
Please share your thoughts on the best business profile for purchase with the community and any tips or advice that you have found to source a well performing, quality business.