If you have considered being your own boss, creating your own financial independence and making your own dreams a reality, you're not alone. Owning your own business is the "American dream". But the reality is that starting or buying a business is a serious financial and personal commitment that requires an understanding of what makes a business successful. All too often, new owners jump blindly into a business venture, overwhelmed by the tremendous workload of starting a business from the ground up. A government survey shows that 60% of new businesses fail within the first three years. An existing, established business that is purchased by a new owner shows a minimal failure rate, with almost 85% success three years later. Thus, the thought of owning your own business through buying has many advantages over building a business from scratch.
Some question that may be concerning are: Why buy an existing business? What are the advantages and disadvantages? Should I start my own business from scratch? Should I buy a franchise? Are Franchises a better buy? This is a quick bullet list of some great advantages of buying an existing business
- Financial Records: An ongoing business has historical financial information. This history can show the buyer that the business has future sustainable earnings. Because of this you can review actual operating results, rather than projected results. Plus, you won’t have to invest the time needed to develop business and customers.
- Immediate Cash Flow: You get immediate cash flow from the ongoing business activities – with immediate positive cash flow, you won’t have to wait months to see a profit.
- Establised Suppliers: You will have established suppliers – the seller can pass on the relations of existing suppliers and vendors helping the transition be seamless. Customer Base: You will have established customers and referral business. Having loyal customers is crucial to the success of any business.
- Existing Licenses: You will have existing licenses and permits Seller Training: The seller will train you in operating the business – to help with a smooth transition for the buyer, the seller can properly train the new owner. Seller Financing: In many cases, the seller will provide the financing you need to buy the business.
For More Information Please Go To: www.MyBizMarket.com
Written by: Al Zamora, CBI
Alliante Business Group - San Diego, CA
