Business Buyers have many questions and we do our best to answer all of them. Here are some questions that Gateway Brokers and Intermediaries get often but that’s do not really fit into a category or have short answers.
Why should I buy an existing business?
There are 8 primary reasons to purchase an existing business:
Actual Results rather than pro-forma | Immediate Cash Flow | Trained Employees in place | Established Suppliers and Credit | Established Customers and Referral Business | Existing Licenses and Permits | Training by the Seller | Availability of Owner Financing
Should I consider purchasing a franchise?
There are numerous advantages of buying a franchise. Here are a few:
Instant Name Recognition of a proven product or service | Ongoing Support, meaning your are in business for yourself but not by yourself | Over 90% of New Franchises are Successful | Proven Operating Systems already in place | Opportunity to Add Additional Franchise Units | More Flexibility in Location | Lower Acquiring Cost, as compared to purchasing a traditional business | Training by the Franchiser | The Availablity of Financing Programs, established by the franchiser
What are some of the key things to consider when buying a business?
The main thing to consider is “Do you like the Business?” Additional considerations are:
Location | Down Payment | Owner’s Discretionary Earnings | What Kind of Training will the Seller Provide? | Can the Business be Improved? | What can be done that the Current Owner is Not Doing?