How to Buy a Business
You have made up your mind to buy a piece of the American Dream of Entrepreneurship. But where do you start? Make an appointment with VR Business Brokers located in Hampstead, NC. We can help you get started.
We’ll look at your background, your financial and business requirements and abilities, your team, geography and a host of other factors. If you’d like to get your Entrepreneurial aptitude tested, we can do that too.
VR Business Brokers has sold over 100’s of thousands of businesses, and we have a well proven process on how to buy a business. We’d love to share that process with you. Make an appointment to stop by and get yourself up to speed on how to do it right.
We also have publications to help you along the way. Drop by our office and get a copy of “Guide to Buying a Business” and our popular “8 Most Costly Mistakes When Buying a Business”. Buying a business is a complex process, and you’ll want to make sure you prepare yourself to make the most of every opportunity.
We’ll also help you build your team. We can refer you to local professionals to help you in the important areas of finance, law and accounting. With your direction the team can help you achieve your objective of owning a piece of the American Dream of Entrepreneurship. When buying a business, your first step should be to contact VR Business Brokers.
Advantages of Buying vs. Starting a Business
Fact: 80% of new businesses fail in the first 3 years!
Fact: Most established businesses continue to be successful!
If you are motivated by personal accomplishment, stimulated by challenge, and want to be your own boss, then business ownership is for you. However, let someone else take the risk and high cost of starting from scratch.
Buying an established business provides you with two of the three necessary components of success – a proven location (or customer base) and the right product.
You provide the third ingredient – management.
The following are some of the likely advantages of buying an established business versus starting a new one:
- The market cannot support another competitor.
- Can get your new business up and running quickly.
- A successful business may stay successful while you get up to speed.
- Your new business may already have the equipment and assets you want.
- Set-up and installation costs are cheaper or non-existent.
- The old clientele may well be your new clientele.
- Get the “best” location or acquire a favorable lease.
- Expenses and revenues are known.
- Easier to get licenses and permits.
- Easier to get loans and other financing.
- Intangibles: Goodwill/Brand Name.
- Supplier relationships are established.
- Trade credit may be established.
- Inventory is in place.
- Get key employees on your team.
- Get trained experienced employees and staff.
- Prevent competitor from entering area.
- Little competitive backlash or reaction.
- May be able to use the experience and advice of the previous owner.