Buying a business is one of the most important decisions you’ll ever make – and one not to be rushed into. There are several options open to you. It’s important to research to ensure you’re buying the right type of business and paying the right price for it. At Business Finders Canada, our professional business brokers will help you throughout the process.
Buying an existing business may be better for you than starting from scratch. The main reasons are it can take you twice as long and cost twice as much to start a brand new business.
Some of the benefits of buying an existing business include:
- Immediate sales – As soon as the deal closes, generating income from the first day, if customers are invoiced.
- Easier to get credit – Banks are more comfortable lending to existing businesses.
- Staff and systems – It can take many months to train employees.
Once you’ve established that buying a business is right for you, it’s time to decide what kind of business you want: a franchise or an independent company.
There are pros and cons to both.
Franchise
Generally, franchises have a proven concept. They are established businesses that have grown successful enough to require more locations. That also means they have an existing customer base with the brand.
Franchises often come with help for setup and training. The parent company already has things like equipment, uniforms, and advertising in place, saving time and money developing your own.
On the negative side, there are rules and regulations to follow; you won’t have total autonomy. You’ll also have to pay the parent company a percentage of the revenues.
Independent Business
With a traditional business, you’ll have more control over rules and processes. There are no fees to pay and the revenues will stay with you.
You set the direction of the business, which means that you can be more flexible in taking advantage of opportunities that open up in the market.
However, the risk can be greater, too. The fate of the business rests entirely on your shoulders.
When deciding what type of business is best for you, evaluate your background and characteristics.
Ask yourself what kind of risk you’re comfortable with, what industry your skillset best lends itself to, and how well you can manage people.
At Business Finders Canada, we’ve developed a proprietary buyer profile that will give you a greater chance at success. Contact us for professional and experienced help.
For experienced advice on buying a business right for you, contact Business Finders Canada now at 250-491-1111. Search our business listings for sale.
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Online: Canada Business Network
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