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A Gallup Poll has shown that 65% on men over age 21 would like to own their own business. The motivations are simple: job security, control of your own destiny, financial independence, more freedom, tax breaks, potentially more income, and the ability to build equity in something that you can some day sell for a lump sum or take a payout for throughout retirement from key employees. Many business buyers think businesses are for sale just because the business is not doing very well or in distress. However, there are many valid reasons businesses are sold everyday. These include: illness, retirement, partnership disputes, relocation, desire to upgrade or downgrade, or the owner is no longer challenged. Most of the time the owner simply wants a change after 10-20 years. This is completely normal. Why buy a business vs. starting new? An established business has steady customers, a proven need for the products or service, and its current location(s). Almost always a solid business is very transferable with adequate training and a smooth introduction to existing customers and vendors. Understand that 57% of "new" businesses fail within the first 3 years. Again, this supports the need to buy an established business with a good reputation, steady employees, and with products and services that are already in demand with growth potential going forward. In fact, that is one of the main reasons I believe people should buy an established business today vs. starting new of buying a franchise. The goal here is that they can take something that is very well established, make it their own and take it to the next level with new energy, capital, new ideas, and very often better management skills. But almost always the value that the new owner brings to a business is new energy and passion that the current owner lacks due to 10-20 year burn-out and/or wants a change. Our office will work with you to explore your areas of interest, your background, financial ability and personality to find businesses that will be the best fit for you overall. The cash flow of the business and the growth that you bring should be enough to cover debt payments and provide income for your lifestyle, certainly after the first year. After the first year it should provide a solid return on your initial investment (down payment). My job as a business intermediary is to educate, negotiate, save you time and money, present facts, and bridge the gap between buyer and seller. Your job is to communicate, ask good questions and to be honest and speak freely. Congratulations, you are in business! Contact us for more information.
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