There are many paths to owning your own business, and it doesn’t always mean starting from scratch. Great companies are bought and sold every day, and there is financing available to buy a business. How do you know when you should buy an existing business vs. starting one of your own? Here are some tips that may help answer that question.
There is a Profitable, Existing Business for Sale
Of course, you could always look for a business or wait for one to go up for sale. However, one sign that it may be a good idea to buy a business is if there is one already for sale that is exactly what you want. For example, if you want to run a gas station and there is one that is doing great or with great potential that is for sale, go for it. Details such as price, location, and whether or not you can get a small business loan to buy the company will make a difference, but having one available at the right place and right time is the first step.
You Have Something to Bring to the Table
If an existing business is up for sale and you know you have something to bring to the table, such as experience, education, or creativity, you are likely in a position to advance that business’s success. Lenders want to know that the people they are giving small business loans will have the skills that can make a company grow.
The Business has Been for Sale for a While
Buying an existing business is not for everyone, and even some of the most successful companies stay on the market for years. Some owners can continue the business successfully during this time, but others cannot. Some types of businesses – gas stations and restaurants, for example – frequently have a hard time securing funding from banks because they are considered risky.
If the stars seem to be aligned and you are thinking about buying an existing business, Biz2Credit can help. There are over 1,300 lenders that offer financing options of all kinds for all types of borrowers. Visit Biz2Credit today for more information.