When you buy an existing business, you typically get a fully running operation with staff in place and revenues coming in. You get systems and processes that have been proven by the prior owner. Unlike a startup, or even a new franchise, the existing business is ready to go the day you take over. Why not invest your time in taking a good business to the next level instead of trying to take a new business past the breakeven spot; that can take years, and sometimes never happens.
While most people invest in existing profitable businesses, some have even found fledgling businesses that are still on their way to profitability, and struggling businesses that need new leadership, to be great investments as well. Make sure you have the skills, assets, and plan to make them successful if you do.
Always conduct detailed due diligence. Seek the help of a professional legal and financial experts when you are in doubt. Consider businesses that have good records that support the seller’s claim about their business’s profitability. Do you need contact information for a great attorney, accountant, or business coach? We would be glad to share our list of great professionals with experience working with privately owned businesses.
Some of the very best businesses qualify for SBA loans (SBA.gov) which allow an investor to acquire them for as little as 10% down, although sometimes you will need 20% or even 25% down. Note the new changes for SBA loans starting January 1, 2018 should be very attractive to business buyers! Need a great bank to help with your loan? We can help with that too.
Not sure where to begin, reach out to for free consultation and support. Review our free Business Buyer Tutorial (https://buybizusa.com/for-business-buyers/buying-tutorial/) on our website for ideas and tips. Good luck. Make your business dream happen!