Why Buy A Business in 2020?
The US economy today remains stable and consumer spending is still at very high levels. That’s one reason business brokers have seen a tremendous number of existing businesses bought and sold over the past two years. Is 2020 your year to buy an existing business?
Buying an existing business certainly has its benefits, such as not having to build from the ground up. However, becoming a business owner is a more complex than you might think. Too often overeager but uninformed buyers end up backing out when they realize how long the process can take. However, for those who do the research and follow sound guidelines, you could be the proud new owner of an existing business in 2020.
Understand the Timeline
There’s a lot of research and numbers you’re going to have to pour through when you’re vetting a business to buy. It will take time to properly analyze this paperwork.
You’ll also need time to meet with the current owner, attorneys, and other people who are key in the transfer of assets. There will be critical decisions to make as you uncover personal and financial information about any business.
With each component, you’ll want to determine whether or not the deal would be right for you. A business broker can be invaluable during this process, answering questions and guiding you through each step. At Alliant, we understand that a business must fit your desires and financial needs to be successful.
Understand Your Financials
Buying a business involves some financial considerations. Some buyers may be able to purchase an existing business with cash, though it’s more likely additional financing will be needed. Securing a small business loan may also take time.
Even with a loan, you may need some of your own capital to pay for a portion of the sale. You’ll want to make sure the final price is one you are comfortable accepting, which can happen during the negotiation process. With Alliant, our team of experts will help you prepare an offer and negotiate on your behalf to ensure you are committing to a good business opportunity.
Even if you believe becoming a business owner is exactly what you want, consulting with a business acquisition expert is a great idea. Not only can they help you close out on the sale quicker, but they can let you know just what you’re getting into and determine whether you’re up for the challenge. The bottom line is the more knowledge you have of the process, the quicker it will go. It is realistic to buy a business in 2020, armed with the right information, strong support, and thorough preparation.
Want to see our current listing of businesses for sale? We have listing from under $100,000 to multi-million dollar companies with multiple locations. Whether it’s your first time to consider small business ownership or you’re ready for a new venture, contact us today to get started.