“I’m Looking to Buy a Business.”
As a business broker based here in Florida this is a statement that I hear often. Within the industry various statistics are stated regarding business buyers. I have heard that 9 out of 10 of those that say they want to buy a business actually don’t buy a business. Based on my experiences that statistic may hold true.
There are so many currently employed that during their 40- hour work week aspire to “be their own boss” by starting their own business or buying their own business. There are many unemployed out there that also think they may want to buy or start a business. So while there are probably as many as millions of those both currently employed or unemployed that aspire to buy a business or start a business, there is a much much smaller subset of those that even attempt to act on those aspirations.
Of that small percent that actually act on their dreams and or goals a small percent may contact a business broker such as myself, and a small percentage of that group may find themselves at a closing table signing documents and actually buying a business.
Many business acquisitions are done with out the assistance of a business broker. The numbers of how many entrepreneur types set off to buy a business and successful find a business without the professional assistance of a business broker are unknown to me.
I personally had bought several businesses on my own without the assistance of a business broker. These were strategic acquisitions within a certain industry. I personally feel these types of acquisitions have a higher success rate. Existing relationships, industry knowledge, focus, and synergies provide for a higher success rate. My views on this are based upon a fair amount of first hand experiences of myself and peers. This discussion is based primarily on non-strategic type acquisitions as referred to above.
Just one of the many steps in the process of buying a business that I assist in is how to apply some focus and some parameters to the basic statement of “I want to buy a Business.”
Being my company website is Sell a Business Florida I assume the person contacting me through my website is looking to buy a business in Florida, but very often many of the other parameters have not been carefully considered.
When one is looking to buy a business criteria can range from looking at a certain specific company, to a certain “type” of business, to “I want to buy a business in the state of Florida.” If you (or someone that you know) are currently employed and want to act on aspirations to buy their own business and gain the feeling of control of ones destiny, or are currently unemployed and view buying a business to be the best means to a gainful career please consider the following.
Below are a few parameters to consider when searching to buy a business. The list can be long and extensive but the below is a starting point that allows the search to buy a business to maintain some focus.
- Location: For business purposes and family purposes does the business need to be in a certain State, County, City, or a certain side of town? Or are you looking to buy a home based business that you can operate from most anywhere in the world?
- Type of Business: Are you looking to buy a certain type of business like a Landscape Company For Sale orTowing Business For Sale, or are you looking to buy a business that has maintained certain performance levels such as “I want to buy a business that has at least 3 consecutive years of Net Income of $100,000+”.
- Are you looking to buy a Hands on or Hands off business.
- How much Available Capital to do you have? This will set a range of businesses that you may consider. Keep in mind that both Available capital for buying a business and Working Capital for running the business should both be considered.
- Are you looking for a business that includes real estate?
- Are you looking for a business that provides Seller Financing?
Prospective Business Buyer: ” Hi Scott I am looking to Buy a Business in Florida.”
Scott: ” Great, What type of business are you looking to buy.”
Prospective Business Buyer: “I really don’t know.”