Why Should I Buy A Business Rather Than Start One?
The paying customers are already established. Walk in and start making money right away. An existing business has a track record. The failure rate in small business is largely in the start-up phase. The existing business has demonstrated that there is a need for that product or service in a particular locale. Financial records are available along with other information on the business. SBA Loans are attainable for existing businesses up to $2 Million Dollars, because they have a track record. 90% of the businesses we list qualify for an SBA loan with 20% down. Or 10% down and 10% seller carry back and up to a 10 year term available. (Up to 25 years with real estate with only 10% down). Call Biz-Specialists today to discuss buying and financing your next business acquisition.
What Should I Look For?
Obviously, you want to consider only those businesses that you would feel comfortable owning and operating. "Pride of Ownership" is an important ingredient for success. You also want to consider only those businesses that you can afford with the cash you have available. In addition the business you buy must be able to supply you with enough income - after making payments on it - to pay your bills. However, you should look at a business with an eye toward what you can do with it - how you can improve it and make it more productive and profitable. There is an old adage advising that you shouldn't buy a business unless you feel you can do better than the present owner. Everyone has seen examples of a business that needs improvement in order to thrive, and a new owner comes in and does just that. Conversely, there are also cases where a new owner takes over a very successful business and not soon after, it either closes or is sold. It all depends on you!
What Does It Take To Be Successful?
Certainly, you need adequate capital to buy the business and to make the improvements you want, along with maintaining some reserves in case things start off slowly. You need to be willing to work hard and, in many cases, to put in long hours. Unfortunately, many of today's buyers are not willing to do what it takes to be successful in owning a business. A business owner has to, as they say, be the janitor, errand boy, employee, bookkeeper and "chief bottle washer!" Too many people think they can buy a business and then just sit behind a desk and work on their business plans. Owners of small businesses must be "doers."
What Happens When I Find a Business I Want To Buy?
When you find a business, we will assist in getting all the answers to any questions you may have about the business of choice. Once you get your preliminary questions answered, the typical next step is for the me to prepare an offer based on the price and terms you feel are appropriate. This offer will be subject to your approval of the actual books and records supporting the figures that have been supplied to you. The main purpose of the offer is to see if the seller is willing to accept the price and terms you offered. There isn't much point in continuing if you and the seller can't get together on price and terms. The offer is then presented to the seller who can approve it, reject it, or counter it with his or her own offer. You, obviously, have the decision of accepting the counter proposal from the seller or rejecting it and going on to consider other businesses. If you and the seller agree on the price and terms, the next step is for you to do your "due diligence." The burden is on you - the buyer - no one else. Once you have checked and approved any areas of concern, the closing documents can be prepared, and your purchase of the business can be successfully closed.
Why Should I Go To A Professional Business Seller?
The businesses are prepared to sell properly. Easy to read prospectus, tax forms and P & L's readily available. Biz-Specialists is an excellent source of information about small business and the business buying process. We are familiar with the market and can advise you about trends, pricing and what is happening locally. We will handle all of the details of the business sale and will do everything possible to guide you in the right direction, including, if necessary, consulting other professionals who may be able to assist you. Our buyers service is FREE, the seller pays our fee.
|
