Q: What type of business should I buy?
A: Buy a business that you will enjoy owning and look forward to working on daily. Certainly, it is important that the business have sufficient earnings to provide a good income stream to support your needs, but it is equally important that you buy a business you will be challenged by and approach each day with enthusiasm. Do not purchase a business which you cannot see yourself enjoying, or you will end up being miserable, and this might end up being reflected in the business not doing well. The HBG professionals will work hard to find a business that suits your needs.
Q: Why should I buy an existing business?
A: There are several advantages to buying an existing business:
- You can review actual operating results rather than projections
- There will be immediate cash flow.
- There will not have to be a lot of work to attract customers and sales should continue as they were with the previous owner
- Staff is already in place. There should be no down-time with untrained employees
- You will have access to established suppliers and credit lines. For the most part, existing vendors will continue to do business with you. They don’t want to lose your business
- There will be existing licenses and permits (if applicable.) In many cases, all you have to do is transfer the licenses to your name. In the event that you must re-apply, you can relax in knowing that the business was previously approved and you shouldn’t have any problems as well
- You can be trained by the seller. The seller will be available to show you how to operate the business. They can help in making appropriate introductions and you won’t make the same mistakes the previous owner made.
- Owner financing is generally available. Most businesses sold are partially financed by the seller. The seller who finances your purchase has a vested interest in your success and will want to help ensure that the business continues to succeed.
Q: How long will it take to buy a business?
A: The time needed for a purchase depends on several factors, including a) the availability of the specific type of business you are looking for, b) how much you are willing to spend, and c) the geographic location you would like to purchase in. Typically, it can take about 60 to 180 days to complete your purchase of a business.