Posted 12-16-2010 1:09 pm by
It’s something millions of us yearn to do – own a business, be our own boss.
The entrepreneurial spirit is likely to befall a great lot of us, putting us in the position to ask ourselves: Should I start my own business, or consider buying one that already exists? While several business experts claim that starting your own business is the ‘safest’ and ‘most effective’ way to go into business, it is also wise to consider the fact that a large portion of start up businesses fail, and there is a high risk associated with starting your own venture. With this, consider researching a seasoned small to medium sized business to purchase instead of starting from scratch.
Choosing to buy a business that already exists is not a hasty decision, nor is it a transaction that you should expect to happen overnight. Research is key when selecting the right business for you. For starts, look for a business that has three to five years of verifiable financial records and tax returns that match the data on the financial statements. Businesses that possess a strong growth record, trained employees, a considerable customer base, proper equipment, and an established presence in the market provide excellent opportunities to interested buyers.
So, how to go about finding a business for sale? There are five to six million businesses in the U.S. alone (with 19 or less employees), and out of them, on average, one million of them are for sale at any given time. With this in mind, the opportunities are pretty much endless.
Here are the top ways to find a good business for sale:
1.) Read the Newspaper. Check the ‘Business Opportunities’ or ‘Businesses for Sale” in the Classified section of your local or national newspapers. Find one or more that pique your interest? Begin the next step of thoroughly researching the business, its background, and consider hiring help to guide you along your way.
2.) Check Online. Business opportunities are everywhere on the Internet – starting with the online commercial real estate brokers and the classified section of The Wall Street Journal website – a highly acclaimed online marketplace.
3.) Find an Experienced Business Broker – Why do all the work yourself, when you can have others do for you? Find a broker you can trust, and one who has an excellent track record with commercial business sales.
4.) Simply call a business you are interested in and speak to the owner. You never know what opportunity you may find by dealing with the owner directly! This is just to ‘test the waters’ – if the owner of the business is interested, take it from there, considering hiring a broker to do the legal work for you. After all, this approach may expose you to the ‘over-eager’ seller, who wants to unload his/her business to you, and will likely not give an accurate representation of the business.
As you begin your quest for a business, always remember that hiring qualified professionals to help you research and facilitate the purchasing process is essential for ensuring success, and evaluating the viability of the specific business in which you are interested.
Still having second thoughts about buying a business versus starting one? It is totally a decision left for you to make – just be sure to explore all of your options, keeping in mind that existing successful businesses have a proven track record of profits likely to continue well after the business sale. But if your ideas are solid, fresh, backed with a great business plan and possible investors – starting anew may not hurt. It’s up to you, the entrepreneur at heart, to know everything you are capable of.
AARON MULLER| ADVANTAGE COMMERCIAL BROKERS
BUSINESS BROKER, COMMERCIAL PROPERTY SPECIALIST
DIRECT: 425.766.3940
FAX: 425.882.2547
CHECK OUT MY LISTINGS AT www.acbrokersinc.com
