Some important things to consider when buying a business instead of starting one.
- Immediate cash flow
- Trained employees
- Established suppliers and credit
- Established customers and referral business
- Existing licenses and permits
- Training by the seller
- Availability of owner financing
- Actual results rather than proforma
Things a Buyer Should Know
Sunbelt business brokers are advisors experienced in helping you find a business that meets your individual financial goals. Like every other prospective buyer, you have a vision of being your own boss and managing your own business. An old saying in the Real Estate industry is "the three most important things a buyer should look for are location, location and location." While location is important to a successful business, be aware that track record and management round out the three components of a profitable business.
For example, let's assume that you find a business that you like and its location is adequate. However, because of poor management, the business may not have the best track record or profitability. But, if purchased for the right price and terms, this business could become very profitable creating a great way for you to achieve your vision of being a business owner.
Finally, be aware that many businesses sell for less than the original asking price. Thus, if it is a business that you like, do not be afraid to offer what you consider to be a fair and reasonable price.
