Part of the appeal of entrepreneurship is the spirit of creation. Business owners take pride in the struggles they underwent to turn their business from an idea to a large corporation. However, building a business from the ground up isn’t the only way to be an entrepreneur. In some cases, it’s smarter to rely on the foundation by buying a business with the help of a broker like Sunbelt. Here are four reasons why you should consider purchasing a business.
Immediate Cash Flow and Established Customers
One of the hardest parts of starting a business is getting through the initial hurdles of finding customers and bringing in enough money to be profitable. A key benefit of buying a business is that you will already have established customers and revenue-generating operations. Start-up ventures often fail because they can’t attract customers quickly enough. When you start with established customers, all you need to do is maintain the status quo for some time before intelligently introducing any changes.
Easier to Get Financing
Not every entrepreneur has the money to buy a business outright, but purchasing a pre-existing business makes it easier to secure financing. Because you can show the lender the current balance sheet for the business you want to buy, they are more likely to approve the loan. It’s less risky than funding an entirely new company in an industry. Having a pre-existing business also makes it easier for lenders to see the potential advantages of the improvements you plan to make. It may even be easier to get a loan to buy a business than it is to get startup capital for a new enterprise. At Sunbelt, we can help buyers get the financing they need to buy the company they’re eyeing.
Established Network of Vendor and Important Contacts
It takes more than customers to run a successful business. Owners have to develop relationships with suppliers, local organizations, and other parties. When you buy a business through a broker like Sunbelt, you can skip much of the heavy lifting since the company already has an established network of vendors and essential contacts. For example, the business probably already has a marketing partner or have a good deal with a critical vendor. When you buy a business, you spend less time building these contacts since you’ll be introduced to them when you finish buying the company.
There’s Less Need For Training Employees
When you buy a business, you also get the employees who stay with the company. Usually, this will be the lion’s share of the organization. These people already know the job, how it needs to be done, and who does what. You may have to teach them about new management systems, but the core job won’t change. New owners won’t have to train employees on the basic or search for people who know how to do the job. Getting a business with established workers reduces the amount spent on training and prevents the operational hiccups that are inevitable when you have an entirely new crew.
With years of experience in buying and selling businesses in Florida, Sunbelt is the ideal choice for entrepreneurs and investors who want to own a business in the Sunshine State. We can help business owners get the best price for what they’ve created. And we help buyers find the best company for sale that meets their needs. Send us a message online if you have any questions about buying or selling a business in Florida.