5 Reasons to Buy an Existing Business

  • By Jay Gilbert
  • 14 Nov, 2017

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.


Financing

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.


Existing Brand

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.


Existing Infrastructure

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.


Fully Staffed

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.

By Jay Gilbert 14 Nov, 2017

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.


Financing

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.


Existing Brand

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.


Existing Infrastructure

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.


Fully Staffed

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.

By Jay Gilbert 12 Oct, 2017

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.


Relocation

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.


Retirement

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.


Bored

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.


Poor Performance

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.


Capitalization

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.


Health Concerns

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.

By _dm_templates 02 Sep, 2017

Have you decided to buy a business or sell a business? It isn’t as easy as listing it online and waiting for the offers to flow in. You need a professional business broker on your side who can work with you to accomplish your goals. A business broker is someone who has the knowledge and experience to assist someone with the complete buying or selling process. Their skill set is generally quite extensive, and should include the following capabilities.

Business Valuations

A broker will be able to look at a business’ financials, tangible assets and other information in order to determine its worth. This ensures that the price is not set too low, or too high, which can result in no offers and add length to the time on market. From a buyer’s perspective this skill is also important, so that the buyer can feel confident in the sale price based on the business’ current financial situation.

Successfully Market a Business For Sale

When it is time to sell your business a business broker will be able to help you complete the transaction quickly and at a fair price through extensive marketing techniques. The broker will be able to package all of the necessary information regarding your business in a presentable manner for potential buyers.


Understand Confidentiality

There is a time and a place to unveil the fact that a business is being sold. Providing that information too early can result in stricken relationships with employees, customers, vendors and others. You can expect the utmost confidentiality from a professional business broker.

Screen Buyers

When selling a business you shouldn’t have to deal with unfit buyers making you offers they can’t follow up on. A business broker screens buyers to make sure only real offers make their way to your desk.

Negotiation Expert

Whether you’re buying or selling a business you obviously want to get the most out of your investment. A business broker will negotiate for you based on the current statistics and assets of the business.

Can Complete a Sale of a Business

Perhaps most importantly, a business broker will be able to complete all of the necessary steps that will complete the sale of the business. This includes everything from the initial consultation and valuation to transferring of the title.

Don’t go into the sale of a business blind, be sure to work with an expert professional broker. If you’re interested in selling or buying a business in Oakland, Macomb, Wayne, Livingston, or Genesee County in Michigan, the team at MWV Consulting - An Affiliate of Empire Business Brokers, CBB, is here to help. Our highly experienced staff will work with you to meet your business ownership goals. To schedule a free consultation for buying or selling a business in Michigan give us a call at (248) 450-5845 today.

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