You want your own business. Now the question is; to start up, to buy or to lease? For many it’s obvious. People start up often when they’re following a passion – whether it is making cakes or marketing their own clothing line. The idea of making a business out of something they love is what drives their entrepreneurial spirit. Others work for someone else before deciding they could do the same thing only better. Another alternative is to buy your own business. Is this the right way for you to become your own boss?
Buying a business is in many ways a much more straightforward proposition. If you buy a business that’s doing relatively well, it may be much easier to secure financing for it than if you were starting one from scratch. The proven customer base is a huge bonus both to investors and banks and to yourself if you’re risking your own finances.
Many start-up businesses can fail from the onset because of the difficulty in gauging the funds needed to sustain your business as your experience and reputation build. Be prepared for this situation and you will be miles ahead of the game. You will need to account for all of your expenses, including your living expenses that will be necessary until your business can turn a profit. Having the right game plan will make all the difference for you.
In contrast, buying a profitable business often means you may be able to take a salary from day one. This however comes with a price. An existing, profitable business can cost you substantially more than starting from scratch.
You may acquire many assets with an existing business; suppliers, employees, systems and credibility being among them. In other words, all the unknown quantities that would deem a start-up a risky venture have been worked out by the business’ previous owners.
This brings up the option of an asset sale. You may find a business that is the type you are looking for, but for one reason or another may be failing. This can be an ideal opportunity for you to bring in your knowledge and experience to turn things around. Sometimes a simple name change and some advertising can reverse the effects of the previous owner.
You may also find a completely different type of business then you are looking for also being marketed as an asset sale, and the location, FF&E, (furniture fixtures and equipment), and leasehold improvements lends itself to your concept. This can be a great way for you to hit the ground running while saving you tens of thousands of dollars in start-up costs.
Maybe your best bet is an empty location. We work directly with several Landlords and Property Managers, and we are able to negotiate your lease for you at a lower rate then trying to negotiate on your own. We have the advantage of knowing what these Landlords and Property Managers are looking for in a tenant, and are able to present you to them according to your strongest attributes. Your Biz Brokers offers this service at NO COST to you!
What ever your needs may be, Your Biz Brokers will make it happen!