At Amplify Business Sales, we help many business owners successfully sell their business. Our ultimate goal is to get a great result for both the seller and buyer. In order to achieve this, there are some critical factors that must be taken into consideration. These factors can greatly impact the sale price achieved. We have witnessed firsthand just how much they can make or break the sale of a business. These include: . . .Read more
As a franchise consultant, I regularly assess whether people are suited to owning and running a franchise business. Our candidates go through a rigorous selection process as it is highly important that we bring the right people on board. . . .Read more
OK, so the thought of running your own business is gaining momentum. Buying a business that has a proven business model is something that galvanizes your confidence – a franchise. . . .Read more
With 2015 now well & truly in the bag, we’ve been thinking about how to make 2016 the best year yet for business owners. With all the parties, BBQ’s and family gatherings just a memory, now is the time to implement effective strategies to achieve what you want from your business in 2016. . . .Read more
When investigating a business to buy, purchasers often only ask about the figures. Their questions are all about “what does it make?” The reality is that the value of a business is not simply found in the financial statements. . . .Read more
Karen Meiring de González wasn’t your model child at school; in fact, she had undiagnosed Attention Deficit Disorder (ADD) growing up as a child in South Africa. Throughout her school years, Karen struggled with low self-esteem and felt like she had no direction in life. Despite being intelligent, Karen just didn’t perform to the best of her ability in the school environment. . . .Read more
Business Brokers assist people to transact into and out of existing businesses every day and whilst it may seem more rewarding to start your own business, a savvy buyer will often find a great opportunity in an existing business.
Here are five good reasons why buying an existing business is a better option than starting one from scratch:
1. Immediate Cash Flow
If you’ve started a business from scratch before, then you will know that the first three or so years are very difficult, and that’s if you make it that long! The outlay of cash to begin your new venture and the loss of regular income when you first start up are difficulties that may take the enjoyment out of your new endeavour. Existing businesses can often provide excellent cash-flow from the moment you walk in. The instant cash flow can also mean you can invest in improvements in the business straightaway.
2. Getting finance can be easier for an existing going concern business
An existing business seller should have the ability to provide you with a set of financial accounts that a bank can rely upon to provide you the financing to purchase the business. This historical performance helps the banks to lend more comfortably. Today’s economic environment of low interest rates provides you with a great opportunity to leverage your home, investment property and the business you are purchasing to help you secure financing.
3. A strong team of employees
Good businesses almost always have good employees and to run a business of any real size requires staff. Employees allow for a smoother transition into the business, they often have well established relationships with customers and suppliers, they provide a shoulder to lean on, and they’ll probably teach you a thing or two! Not to mention, employees give you the ability to take a well-earned holiday from your business when you want or need one.
4. The seller can provide training
Most business sales involve a transition period where the outgoing seller will provide assistance and training in the running of the business. This transition period is often very helpful as it provides the new buyer with introductions to existing customers and suppliers, and effectively hands the business over to the incoming purchaser. The seller can also be an invaluable resource into the future and may even offer to stay on as a paid employee or a volunteer mentor for an agreed term after the purchase.
5. It’s all set up for you
Setting up a new business often means overcoming many obstacles small and large that can often get in the way of running the business. Buying an existing business often means all the set up work is done for you – suppliers, marketing, location, staffing, branding, systems etc. Sure you may want to stamp your own mark on the business by making some changes, but when you buy a good existing business, many of the changes you make may be small such as renewing the décor, adding some new products, changing the prices or increasing the marketing.
Overall, buying an existing business can be advantageous to the savvy buyer. An existing business may mean easier lending ability, instant cashflow, more support and training and fewer set up headaches. These advantages allow you to spend more time growing the business and investing in marketing, product and further training.. . . Read more