Getting Into Business: Don’t Start It! Buy It!!

Many of us have felt the entrepreneurial pull of running our own business at one time or another. The allure of being your own boss can be really strong, and it’s no wonder. Small business ownership and its operation has proven to be one of the most financially rewarding pursuits that you can follow.

But, it can also be very frightening for those just starting out! We’ve all heard about the high mortality rates for new business ownership; 50% won’te make it through the first three years. There are many reasons for this. Wouldn’t it be great if the potential problems could be eliminated for you as a new business operator? Well, they can!

Buy an existing profitable business instead of trying to start one from scratch! There are three key advantages to this:

Existing successful businesses have a proven track record of profits that will most likely continue long after the business sale. Now you get to apply your new ideas, expertise, and renewed energy to take the business to even higher profitability.

You’ll have established customers for immediate cash flow. No suffering through a long start-up period where you struggle to attract customers to your business. Use these customers as building blocks for future growth.

Typically, you’ll be able to use a business seller’s financing of a large portion of the purchase price to maximize your buying potential.

There’s no question that the success rate for new business owners that have purchased an existing business is much higher than for those who start a newly formed business. This is because an existing profitable business has already proven that it’s successful.

However, the actual process of purchasing an operating business can be a challenging undertaking and you’ll want to be fully prepared. You need to gather as much information as possible which will help you to; find a suitable business for sale, value the business, arrange financing, conduct negotiations, and finally, to actually close the deal and transfer ownership.

The first step in this process is to find out if you’re truly fully motivated to operate a small business (whether you start it or buy it). Ask yourself:

Do I know what kind of business you want to buy?
Am I technically qualified and experienced enough to run the business?
Am I prepared to “eat, sleep, and drink” the b