Buying a Business

If you were born with that “entrepreneurial spark” in your eye, then no economist or banker is going to keep you from starting a business.  While many analysts may say that it’s not a good time to become a business owner, others have found that buying a business with no money is suddenly a possibility.  You may be wondering how that’s even possible at a time when credit is so hard to come by, but several articles have been written about exactly this topic. 

Seller-assisted financing is only a part of the equation.  If it were that easy, everyone would be doing it, but it is possible to by a decent business with a combination of seller-assisted financing and a bank loan.  If the business makes sense and it’s big enough to warrant full financing, it is possible to get in without spending a dime of your own money.  With lending rates at historic lows, there has never been a better time to finance a business. 

As it becomes more and more difficult to get a business loan from traditional lenders, many entrepreneurs are looking to non-traditional sources for business financing.  While some people consider their 401K or IRA investments a “sacred cow”, others see it no differently than a convenient self-funded bank.  If you approach buying a business with your 401K in the same way as a bank loan, complete with interest payments, it really can be a reliable source of financing.  The only problem is the risk that your business could fail, and then you would need to continue repaying your loan with interest. 

We’ve all heard about the big-name companies that owe their success to an enterprising spirit and good timing.  Were it not for their ability to see an opportunity and seize it, they may not even be here today.  You may have started out your business by buying an existing business and managing it well; or perhaps you started your business from scratch.  Either way, the key to continued growth in your industry may only be possible by buying another existing business. 

Not all entrepreneurs are comfortable working behind a desk all day, and not every business owner is only interested in profits.  The truth is, most successful business owners are those who follow their passions.  If you have always dreamed of becoming a pastry chef or making the best cheesecake in town, then maybe it’s time to buy a bakery.

Starting a retail baking or baked goods business can be something that starts out as “just a hobby”.  Maybe you’ve been selling your famous muffins or chocolate chip cookies to local cafes and demand has grown well beyond what you can handle part-time.  Or perhaps you already own a bakery and you’re looking to buy a second bakery business in a different part of town.  When your “brand” is already successful locally, it is a lot easier to open a second store. 

If you’re a serial entrepreneur, then you may already be familiar with the benefits of buying an existing business.  But with a slower-than-expected economic recovery, it is wise to proceed cautiously when searching for an existing business. 

The ability to see an opportunity and seize it at the right time is a skill that has made many entrepreneurs rich, with many an empire being built by strategic acquisitions of synergistic businesses.  However, with the rise of online business directories, the best businesses are often snatched up before a business broker even finds out about them.  Staying ahead of these trends and finding the best deals on existing businesses requires keen intuition and skill. 

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Click to contact us for help buying or selling a business.  Since 1980 we have been in the "business of business." We are a professional company specializing in bringing For Sale By Owner Business Buyers and Sellers together. Being one of the Nations leading firms in our industry, we are best equipped to help you because of our background and years of experience in working with business buyers Nationwide and businesses of all sizes and types. Your business purchase or sale information will be handled by experts and conducted in a confidential manner.

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