No one hiring? Own a real business…buy an existing one!

Over 70 percent of U.S. adults surveyed said they wish they worked for themselves. People typically become business owners in one of three ways – starting a business from scratch, buying a franchise, and acquiring an existing business. Each way has its advantages and its challenges.

Starting a Business from Scratch

Starting a business from the ground up often seems like easiest way to develop your dream business and the most cost effective way to get started. It gives new business owners flexibility to create just what they want. However, it often takes several years, if ever, to payback the cost to start it, develop it, and operate it until profitable. The apparent “low start up cost” is often deceiving and the need to create proven success systems frequently take more time and expertise than people expect.

Franchising

Franchising has great appeal because of the great ‘success’ systems in place and its brand recognition. Franchises typically have certain limitations on expansion and restrict creativity in order to preserve brand integrity. If you seek a business where you can be highly creative, make sure you understand the rules for any franchise you consider. Also, just because a franchise had a large number of locations, does not guarantee that those locations are successful. While many franchises bring great value to their franchisees, there are plenty of locations that are losing money or barely breaking even. Do your research and check out websites like BlueMauMau.org

Acquiring an Existing Business

Lastly, acquiring an existing business also requires a great deal of research and investigation. Ray Kroc bought the McDonalds stores and created one of the world’s greatest success stories. Howard Schultz acquired the original Starbucks and created his own empire. But too often, business buyers miss certain red flags or hurry through their research process only to later regret their investment decision.
We have seen healthy signs in the economy recently. Most of the business owners who are doing better are applying best practices and executing the basics but doing it well. Be encouraged and if you think it’s time that you become the CEO of your own company, start planning today. Get the support you deserve to successfully become the CEO of your own business; please feel free to reach us at 833-Buy-Biz1 (833-289-2491).

• Understand your strengths and best skills. Know how you will compensate for the skills you have yet to develop. Know which of your abilities will most greatly allow you to succeed.
• Make a life plan and know exactly how much of your life you will be able to apply to getting you business where it needs to be.
• Know exactly how much money you can invest just in case your business does not work as planned.
• Create a business plan before you acquire a business, purchase a franchise or start your dream business.
• Assemble a team of trusted advisors – people who will provide honest feedback, even when it the opposite of what you want to hear.
• Talk to business owners in the industry – even if you have to go away far to do so. Ask insightful questions that allow you to extract how they really feel about their industry.
• Do your own research – lots of it. Get professional help to review the financials, the legal considerations and the other aspects of the business or franchise you are considering.
• Verify everything. We have seen people enter industries because they believed “all gas stations make money” or that “coffee has such great mark up that you can’t go wrong with a coffee shop’.

We have seen big chain franchises, where significant percent of their franchisees are suing or going broke. We have seen existing business sellers falsify records, including sign copies of their federal taxes. Always verify!

We have seen healthy signs in the economy recently. Most of the business owners who are doing better are applying best practices and executing the basics but doing it well. Be encouraged and if you think it’s time that you become the CEO of your own company, start planning today. Get the support you deserve to successfully become the CEO of your own business; please feel free to reach us at 833-Buy-Biz1 (833-289-2491).

Can business grow in a challenging economy like this?

At Legacy Venture Group, we have the advantage of speaking to lots of business owners in almost all industries. Most business owners have faced real challenges over the last few years and even struggled with challenges of Business Owner Chronic Stress.

In spite of a challenging economy, however, we have seen a number of business owners who have significantly grown sales and profits in this challenging economy.

These successes are not just luck or being in the right industry. For many business owners, it is a matter of going back to basics and remembering what their real vision for success was that drove them to get started in the first place. Owners have had to revamp their businesses and rewrite (or write for the first time, in some cases) their business plans. They have taken a fresh look and made their businesses relevant to today’s economy.

Be encouraged.

Business owners are turning things around with the right effort and focus. You can too!