You can buy a business for less than launching a new one! Contrary to popular belief, entrepreneurship isn’t just starting a new, novel, business. You can buy and grow an existing one. Some benefits of buying a business vs. launching a new one:
- Established customer base
- Existing assets such as furniture, fixtures and equipment
- No need to hire new staff
- Training from seller
Example New Cost Comparison
- Customer list: $5k
- Furn., Fix., Eq.: $30k
- Find Staff: $5k
- Training: $5k
- Ramp-up cash: $50k
- Legal, Due dil.: $5k
- Total: $100,000
Example Existing Cost Comparison
- Customer list: Incl’d
- Furn., Fix., Eq.: Incl’d
- Find Staff: Incl’d
- Training: Incl’d
- Ramp-up cash: $10k
- Legal, Due dil.: $5k
- Sale Price: $40k
- Total: $55,000
Not all businesses are sold because they are unprofitable. Sellers list their business for many reasons such as retiring, moving, and changing priorities.
To buy a business, you will need several things, including:
- Valuation of the business
- Business plan to obtain acquisition capital
- Due diligence of: Competitors and customers, and financials
Contact us today for help with buying a business.