bizzday April 27, 2018 No Comments
Today many businesses are purchased by individuals/Organizations to scale up their presence in the business. The successful established entrepreneurs are diversifying their business. What makes the interest growing in buying a running business? Business has good reputation in the business market and demand of the product/service is really moving forward.
Why should I buy a business already running in profit? Can’t I afford to create a business pattern from scratch and establish the business? The honest answer is no. Listing few pain areas when you start a new business from scratch.
- Experience in the niche
- Knowing the local policies
- Geographical Limitations
- Blocking the capital for unpredicted growth
- Diverting concentration from existing business
In some situations one must create business from scratch because there won’t be anything exists. For example the Bitcoin mania was too high in early days buying an existing business can wipe off bank balance due to unknown profits. In such scenario it’s better to buy a running business for sale. The new owner will know Profit/Loss before hand.
Goods reasons behind Acquisitions
- Business good will
- Health Balance sheet
- Asking price is only 5 PE
- Ease of making profit
- No environmental or Geo-Political issues
- New Niche area
- Reliable and co-operative seller
Reason for running business sale
Sell your business Why? That’s one of the first and challenging question a potential buyer may ask. Next you may think why a profitable business for sale? Common assumption in todays business street decides is it a ‘ Startup for sale ‘ or a sick company for sale but that’s not the reality. You need to dig more for genuine reasons for a profitable business sale.
Common reasons for selling a Business:
- Need Funds for other venture
- Retirement of owner
- Partnership disputes
- Illness or death
- Boredom in existing business
- Moving out of location
How to buy a business with great profit numbers?
Plenty of business evaluators are available in the market. Don’t go only with software business valuation services, also try the local business valuation firm.
Buying a running business from established business brokers, you have many options to choose the industry like retail, Internet business, Pharmaceutical business, Franchise business, websites business, online business.
Flashing sale in today’s world is ‘ Internet business for sale ‘ Do you know why? Internet business can be exchanged easily and make profit quickly having good marketing skills and negotiation. One such portal is www.BizzDay.com which is selling and buying of business.
Today many online websites focused on buying and selling of business. Question here is how find a business for sale ? How easy business buying is? Sellers of businesses will advertise or engage with business broker services. Sources are newspaper ads, Internet, Industry specific community or business brokers who also advertise themselves. Internet resources enables a buyer/seller to locate businesses
Many business brokers have their own online business listing website for buying and selling business. Here you Buy sell business of your choice and invest in a business as a small stakeholder. What makes you successful is ‘ Buy a profitable business ’. Bizzday.com is the best platform for business broking and listing online.
Negotiate and proceed
Core part in business closure is negotiation sometimes it is cumbersome task to perform. Plan your negotiation with the steps involved through out the process. Discuss with your mentors, friends, colleagues and rehearse once. The interaction must be constructive in order to bring win-win situation to business buyer and business seller. Effective communication, industry knowledge, leadership skills attract the seller to move forward and make them comfortable in pricing.
If everything goes smooth in negotiation then the business listing of ‘Profitable company for sale’ will be disappeared forever.
Closing the deal with formal agreement
Closure performed by an attorney, mostly deal goes with Escrow accounts both the buyer and seller do not need to own an account for buying and selling of business. An intermediary can perform this task.
Predefined templates are available for any type of business especially the online business for sale are having readymade template for closure in many businesses classified website.