Outside of inheritance, there are two primary ways of owning a business. You can A: start your own, or B: buy an existing business. While starting your own business can be extremely rewarding, it may prove to be much more difficult than acquiring a business that is already up and running. So yes, both have their pros and cons, but in this article we will look at five reasons to purchase an existing business. Remember, this applies to restaurants, auto shops, retail stores and many other business models.
It is easier to prove the financial success of a business that is already operating by showing a possible lender annual documents that reflect the existing business’ financial situation. A bank will be more inclined to give you funding for an existing business than provide money for a start up based on hopeful projections.
When you purchase an existing busines you immediately have the advantage of brand recognition. Most business will have marketing, advertising, a client base and other relationships already in place.
You won’t have to worry about acquiring and implementing IT systems, deciding on registers, choosing service providers and other system and infrastructure choices when buying a business . All these things will already be in place, allowing you to dive in. It will be up to you if you choose to change all or some of these services and models in the future.
A great benefit of purchasing a business is that there will already be an existing staff who are fully trained. This can save you a lot of money, compared to the cost of training all brand new employees before a brand new business opens.
Immediate Cash Flow
Perhaps the greatest benefit of purchasing a business is that there is immediate cash flow, assuming the business is profitable. A proper acquisition will put you in a place to pay back bank loans, continue paying employees and take a salary of your own.
If you’re interested in starting a business, be sure to consider the benefits of buying one already in existence. To learn more about buying a business in Michigan reach out to MWV Consulting - An Affiliate of Empire Business Brokers. We would be happy to discuss the pros and cons of buying businesses of all types. To schedule a free consultation regarding buying a business in Michigan please give us a call at 248-450-5845 today.
As a small business owner one of the toughest decisions you may ever have to make is if you should sell your business or not. There are many reasons that may result in the need or desire to sell, from boredom to ill health, to chasing new dreams. If you are currently considering selling your business you may find that you fit into one of the following categories, as they are the most common reasons for offloading.
While it is sometimes possible to relocate a business, more often than not a need to relocate, for family, school, or other reasons, often means that a business will be shut down, if it is not placed into the hands of a new owner.
One of the most common reasons for selling a business is retirement. We all get to a point in life when it is time to hang up the gloves, or the wrenches, the spatula, sheers or whatever your tool of choice is.
This may seem like a silly reason to sell a business, but it’s a very real one. When business owners feel unchallenged, selling is often a way to let the business owner explore new options.
If your business is underperforming it may be time to sell. Just because it isn’t profitable now, doesn’t mean that someone else won’t take on the challenge of making it so. There is always money in business, especially for those with high entrepreneurial spirits.
After years, or decades of hard work, you deserve to pull out your capital. If you’re interested in seeing what your business is worth be sure to talk to a professional business broker .
Pursue New Opportunities
Whether business is going great, or… not so great, business owners may choose to chase new opportunities. This could be a business purchasing option, a job at an existing business, or building something from the ground up.
If a business owner is not in good health it is more than likely their business will flounder. Small businesses are very hands on, and if the owner isn’t able to be as present as they would like, selling will help ensure the business remains open, under new ownership.
Should you decide that selling a business is the best move for you at this point in time, it is crucial that you work with a professional business broker to ensure that you get the best possible deal. To sell a business in Michigan reach out to MWV Consulting - An Affiliate of Empire Business Brokers. Our dedicated team will assist you throughout the whole process. Give us a call at 248-450-5845 to schedule a free consultation with one of our expert business brokers in Michigan.