Big data and advanced analytics are creating profound new opportunities for businesses, yet we found that only 4% of companies are able to combine the right people, tools, data and organizational focus to take advantage.
Here are 10 key advantages of buying a business versus starting a business.
- The buyer can start drawing a paycheck immediately.
- It is usually a lot easier to obtain financing for an existing business with a proven track record than it is for a start-up.
- Buying an existing business can save you from 3-5 years in start-up time and costs.
- The staff of an existing business is already trained and experienced – no learning curve is necessary.
- The previous owner can provide invaluable assistance, training and guidance after the sale.
- Your sources of supply and “quantity pricing” are already established.
- Credit with vendors is already in place and may likely be transferable.
- A successful business history increases the likelihood of your future success.
- You will have immediate access to a large customer base (developed over many years).
- A solid, long-standing reputation with customers, vendors and the community at large lets you build quickly on a successful base.
Leading the Way
Here are the principles of a successful business sale…
- Good chemistry between the parties
- A clear mutual understanding of the numbers
- A clear mutual understanding of the agreement
- A mutual respect for the emotions of buyer and seller
- The mutually held belief that both buyer and seller are involved in a good, fair deal
- The right timing…Buyers look at future returns. So if believe your business is trending upwards over the next 6 to 24 months, then logic tells us it’s the right time to sell. When the outlook is positive, that’s the right time to sell.
- A motivated seller…Businesses get sold when the seller is committed to the process and to the goal of finding the best buyer. Dedication and enthusiasm on the seller’s part are crucial.
- Sophisticated online, offline and social media marketing…Our national “reach” in a variety of communication channels will ensure that your company gets the broad exposure it deserves. Our entire focus is to drive up the value of your company by creating demand through multiple offers.