ADVANTAGES OF BUYING AN EXISTING BUSINESS
A PROVEN HISTORY OF SUCCESS
Feel confident about owning a business with years of history, minimizing the need for trial & error. Start without the need for proof of concept. Bonus: Lenders will feel more confident about granting a business loan too.
An experienced team who will be there to help ensure continued client satisfaction as well as be a source of expertise to you as the new owner.
Building a name & reputation takes time, effort & money. With an existing business, customers have already established trust & loyalty to your business, often with solid online reviews to back it up. You can most likely expect sales from day one as an owner.
A READY-TO-USE SPACE
In most cases, lease & equipment setup are already in place for a turnkey handover.
ESTABLISHED SUPPLIER RELATIONSHIPS
Pre-negotiated supplier credit terms, sourcing, pricing, etc. can all be available to a new owner as part of a business transfer.
Most transactions include a predefined training period from a seller so that the buyer can learn the intricacies of the business for a successful takeover.
FIND YOUR NEXT BUSINESS
THINGS TO CONSIDER BEFORE BUYING A BUSINESS
What type of business would most benefit from the invaluable experience you bring? Are you a sales & marketing guru? Do you have the skills to modernize a business stuck in the past? Do your strengths lie in leadership & empowering a team?
WHAT ARE YOU PASSIONATE ABOUT?
Finding an opportunity that makes you excited to jump out of bed in the morning is the key to growing a successful business.
DISTANCE FROM HOME
For businesses that require your physical presence on site, you want to optimize the use of your time & energy by minimizing time on the road.
YOUR LIFESTYLE / FAMILY LIFE
What does work-life harmony look like to you? How many hours would you like to dedicate to your business per week? How often will you see your employees? How will this change over time?
YOUR AVAILABLE FUNDS FOR A DOWN PAYMENT
Generally speaking, a down payment for a business ranges between 20-35% of the asking price but can be as low as 0% or as high as 100% in certain circumstances. Be sure to ask your business broker what the available financing options are for the opportunity you’re considering as they can differ greatly from one business to another.
Why do you want to buy a business?
What kind of salary do you want to make?
What is your time horizon for retirement?
What is your exit strategy?
Do you plan to involve partners in the business?
WHAT TO EXPECT AFTER BUYING A BUSINESS
Give yourself at least one year to assess and learn the operations while going through a full business cycle. Trust long-term employees to continue doing what they do while you’re learning. Unless you’re sure, make changes a little at a time to not disrupt the current state of the business. Generally, year 2 to year 5 will be for improvement and expansion.
Take time to get to know your employees & give them time to learn about your leadership style too. Allow for an adjustment period of a few months for everyone to adapt.
FREE EBOOK: INSIDER TIPS ON BUYING A BUSINESS
Wondering if buying a business is right for you? Want to know how to choose one business over another? Then check out our free ebook “Insider Tips on Buying a Business in Canada” written by Greg Kells, President of Sunbelt Canada.