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Thinking about buying a business? Maybe it’s a franchise or business opportunity. Or maybe it’s a going business that’s up for sale because the owner is going to retire.

Before you sign on the dotted line, do a reality check. Get the answers to these questions for your business plan (be realistic and do your own research--don’t rely on information from the seller) and do an honest evaluation of your own personal finances.

What monthly sales do you expect from the business?

How much money do you need this business to bring you on a regular basis?

Will the business allow you to earn enough profit to meet your expectations and needs?

How much more than you requirements will the business bring in?

How long will it take until the business is profitable?

How will you manage until the business makes a profit?

How will you cope if the business doesn’t meet the goals you have set for it?

When you’re calculating expected profits, be sure you take into consideration all your costs. Don’t forget about marketing and advertising, cost of employees (if any), loan repayments, website, website marketing, legal, accounting, sales commissions, office supplies and rent.

More: Qualified Franchise Attorney: Don't Buy a Franchise Without One

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