Considerations when deciding to purchase a small business

Buzz Harris

by Buzz Harris

When deciding to buy a business, prospective buyers sometimes are faced with the following dilemma: Do I buy an existing business, or do I buy a new franchise?

Some of the advantages of an existing good independent business include a proven track record of sales and profits, a well-known name and location, a strong mix of products and services, a group of knowledgeable employees, and a good customer base.

Buyers will be able to use the business’s established customers for immediate cash flow and as the base for future business growth. This will help eliminate what can often be an extensive and challenging start-up period for owners.

Because of seller financing, the new buyer of an existing business is able to leverage their buying potential into a larger business with bigger cash flow.

Also, due to the seller financing the transaction, the seller will want to ensure that there is a smooth transition to ensure the buyer’s success.

Read the entire article in the NNBW: https://www.nnbw.com/news/2021/apr/28/buzz-harris-considerations-when-deciding-purchase-/