A big advantage in buying an ongoing business is that you, as the new owner, have an immediate cash flow and an established customer base. You don't have to build a business; you simply take over an existing successful business with the present owner's assistance.
We assist you in obtaining financing. Banks are reluctant to finance business purchases for several reasons. First, all small businesses attempt to minimize profits shown on financial statements to reduce tax liability. Also, a bank cannot manage a business if foreclosure becomes necessary. Therefore, over ninety percent of business purchases are financed by the owners, which demonstrates their confidence in the business.
Unlike the sale of real estate or franchises, the sale of an ongoing business is very confidential for both the seller and the prospective buyer. All inquiries are held in strict confidence. Meetings are confidential, and we are available after hours and on weekends.
Things a Business Buyer Should Know
At United Business Brokers, we are advocates of finding a business that you like and would feel comfortable managing. You, like every other prospective buyer, have a vision of being your own boss and calling your own shots. A business must fit your visions to be successful. An old saying in the real estate industry is..."The three most important things a buyer should look for are location, location and location." While location is important to a business buyer, be aware that track record and management round out the three components of a successful business. Let's assume that you find a business that you like and its location is fine. But, because of poor management, the business may not show the greatest track record. Purchased for the right price and on the right terms, this business could become more successful with proper management, making it a good way to achieve your vision of being in business for yourself. As a prospective business buyer, you will be concerned as to why the business owner is selling the business. Business owners sell for a variety of honest reasons. Besides the obvious reasons of retirement, bad health or re-location, many sellers simply tire of doing the same thing and want to move on. If it is a good business for you, the reason for the sale doesn't matter. Finally, be aware that most businesses sell for less than what they are listed for. So, if it's a business you like, don't be afraid to make what you consider to be a low offer. Remember, your United Business Broker is a well-trained professional who knows how to buy a business. Do utilize your broker's talents - and call your broker whenever you need assistance or have questions about the process.