Buy a Business

What is your American Dream?   If it's to own your own business, we may be able to help.   Not everyone is cut out to own a business.   But for those that have a dream, the experience, and the funds, it can be one of the most rewarding life experiences.    

So, should you buy a business a business or start one from scratch?  Obviously, starting from scratch may appear enticing because it looks like it requires less capital to start.  However, a start up may not generate consistent weekly and monthly profit for several months or not ever at all.   A bank will likely not give you a capital loan, so most start-ups are boot-strapped, meaning the owner funds them out of personal finances or borrowing against other assets.  Buying an existing business is often the best choice for an experienced business person who wants to strike out on their own.   You can get a bank loan for the acquisition and working capital.  You get an established customer base, a known physical location, trained employees, existing systems and procedures, and most of all, immediate cashflow day one.  

How to choose what business to buy

Many people will start with the industry.  They may have a preconceived idea of what they want to do and they look for a business locally in that industry that they can acquire or start from scratch.  Having experience in the industry or contacts or a circle of influence definitely has its advantages.  However, you may find it difficult to find an exact match with existing available businesses for sale.  In that case, if your heart is set only on that industry, starting from scratch or buying a franchise may be the best solution for you.  

More times than not though, we would encourage you to stay open to the industry.  Look at the financials and see what businesses and what industries will create the income that you would like in comparison to your interest in that industry.  Maybe owning a sub shop is attractive in your mind because you see so many of them and you enjoy the food.  However, when you analyze the financials, you see the owner may not make the income on one location that you really need or want.  You can set your mind on the fact you'll need 3-5 locations to meet your goals or you can decide to look at other industries.  

That's where we come in.  We'll be happy to discuss your background, income and life goals, and budget and what options you may want to consider for buying a business.  

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Business Buyer Broker

In most cases, there will be a single business broker involved in the business sale transaction.  Business Brokers act as intermediaries.  Personally, we only take listings so we believe it's going to be a win-win for both the buyer and the seller.  We try to ask all the questions upfront and disclose everything to the prospective buyer.  

However, we assume there are situations where not everything is known about a business until after closing.  Due diligence is the period of discovery that you want to find out if there is anything to which you should be concerned.  Especially if you are a first time business buyer, you may want a second set of eyes, or a mentor, to help you evaluate opportunities, guide you through the due diligence, and to ask the questions that not everyone may feel comfortable asking, or answering.  While a Buyer's Broker may likely work on a retainer, or a fee to the buyer, it may help prevent costly mistakes for the novice investor.