When you think about famous entrepreneurs, it often conjures thoughts of a person who came up with an inspired idea and built a successful and thriving business from the ground up. While this may be the path for a few very driven individuals, the path for most entrepreneurs begins quite differently, with the purchase of an existing business.
I have a lot of questions, who should I ask?
The smartest step any budding entrepreneur can make, or anyone looking to buy a business for that matter, is to hire an experienced business broker. A broker will be a great asset, as they can help you find businesses that are right for you, be a buffer during the negotiations between you and the seller, and they will be invaluable with assisting you with everything from licenses to leases.
Should you start your own business or buy an already existing business?
Typically, buying a business is a safer bet than building one from scratch. You get to take over as owner of an already built-out location with trained employees and a proven set of operating procedures. This can be a fantastic entre into business ownership because it skips all the disadvantages a start-up will encounter, like establishing a customer base and building cash flow.
It is not, however, a fool-proof way to enter the world of business ownership. You need to choose a business that is profitable, or one that has easily-remedied issues that will make it profitable quickly. You also need to choose a business that has room for growth.
What kind of business is right for me?
When you have made the decision to buy a business instead of starting one from scratch your next step is choosing the type of business you will buy. Be very careful with this step because it is where many new entrepreneurs make a huge mistake.
Don’t buy a business you know nothing about. This problem arises most frequently in the restaurant industry where folks who have always wanted to buy a restaurant, but have never worked in one, get in over their head in a new business they know absolutely nothing about.
Look in industries where you have some knowledge or experience, as this familiarity will help you a great deal while you are trying to get your bearings as a new business owner. Taking over a business for the first time is hard enough; you don’t want to add starting from scratch to the equation.
Do you have a business type in mind, and are looking for help with finding the right business for you? Please feel free to leave us a comment or question here, and we will be happy to help you on your journey to business ownership.
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