02 Jul Buy an Existing Business – Thinking Outside the Boss!
Posted at 12:32h in Uncategorized
If you have been thinking about getting a new job, but have not found the right opportunity, consider owning your own business. One of the fastest ways to get an income producing business is to. While there are few guarantees in life, note that the time to get a brand new business up and running from concept to profitability could be years – and sadly, many start-up businesses and new franchises never make an acceptable profit.
Buying an existing business, however, has several advantages, including a proven track record of sales and earnings, a customer database, and an established place in the market. Buying an existing business worked for Ray Kroc who bought McDonalds and it may be right for you.
One of the advantages of the recent economy is that it has provided many businesses for sale at much reduced prices. Whether that represents any additional value has a great deal to do with the Buyer considering the business. Many businesses that thrived or survived a few years back were not necessarily managed as well as they could be. As the economy grew more challenging, people not only spent less but became more critical about price, service, quality and overall experience. Businesses failing to achieve high marks in those categories today are experiencing the biggest reductions in sales and earnings.
Legacy Venture Group, the business brokerage, has seen even start-ups opening in 2009 that are drawing large crowds. Clients who have bought businesses through Legacy Venture Group are reporting sales increases. Similar businesses, offering similar products and services at similar price points are experiencing very different results in 2013 – some thriving while others shrinking. The chief differential between the thriving and the shrinking businesses , giving each is experience success or challenge in the same economy, is often the overall management of the business controlling expenses, services, marketing and other business basics.
Someone bringing great management skills from a previous job or experience can take advantage of today’s lower prices being charged for businesses that would have fetched far greater dollars a few years ago. The ability to fix problems that keep a company from thriving has always been a key characteristic in identifying the right business by smart investors.
Business imperfections allow for opportunity, and opportunity allows for growth. In general, people choose a business based on potential, but pay a price based on most recent performance. If you bring a skill set allowing you to fix some of the key problems that a business exhibits, you can usually improve business performance, increase profitability, and grow business value.
If you feel you haven’t developed enough skills yet to make you feel comfortable in buying a business with managerial remodeling needs, then look for one with great systems in place. You will want a business with an owner who is willing to stick around for more than just two weeks. Hopefully the business has a written manual for systems and processes, established policies, and great records of customer lists, sales reports, and taxes.
One solution is to purchase an existing franchise. One can be justifiably critical of some franchises, but we encourage people to open their minds to the right franchise; consider not just the brand, but also the very specific operation. How the current owner has been running the business influences its value a great deal – regardless of the franchise brand.
Start ‘thinking outside the boss’ and consider the world of business ownership. Legacy’s team members are always delighted to help people explore the benefits of business ownership. Legacy Venture Group can help with business search strategies, funding, and planning. Log on to www.BuyBizUSA.com for more articles and listing. Check out www.BuyBizFL.com for listings throughout Florida. Request a package on buying or selling a business at Info@BuyBizUSA.com.