The Advantages to Buying an Existing Business

Have you considered being your own boss, creating your own financial independence and making your own dreams a reality? You're not alone; owning your own business is the "American dream". But the reality is that starting a business is a serious financial and personal commitment that requires an understanding of what makes a business successful.

All too often, new owners jump blindly into a business venture, overwhelmed by the tremendous workload of starting a business from scratch. In fact, a government survey shows that 60% of new business start-ups fail within the first three years. On the other hand, an established business that is purchased by a new owner shows a minimal failure rate.

Here are just a few of the advantages an existing business has over a start-up:

  • You can review actual operating results, rather than projected results

  • You get immediate cash flow from the ongoing business activities

  • You will have trained employees in place (that can train you!)

  • You will have established suppliers

  • You will have established customers and referral business

  • You will have existing licenses and permits

  • The seller will train you in operating the business

  • In many cases, the seller will provide the financing you need to buy the business
  • Sunbelt's trained intermediaries know the reasons a good business succeeds. From understanding the reasons an on-going business can provide a positive cash flow, to the value of an established name, location and customer base to the inner workings of new owner financing and sealing the deal - Sunbelt can make your dreams reality.

    Confidentiality
    Unlike the sale of real estate or franchises, the sale of an on-going business is very confidential for both the seller and the prospective buyer. All inquiries are held in strict confidence. Meetings and information shared or observed are to be held in strict confidence.

    To ensure confidentiality for all parties, Sunbelt brokers require a confidentiality agreement to be signed. In return for granting you, the prospective buyer, access to investigate the operations of the seller's business and otherwise private information, the prospective buyer promises to use the information for the sole purpose of evaluating the benefits and risks of purchasing the seller's business in strict confidence.

    Financing
    Brokers can skillfully negotiate financing and formulate a financial plan that works for you. Due to a bank's reluctance to finance small businesses, over 65% of business purchases are financed by the current owners, demonstrating their confidence in the continued success of their business. Financing a business purchase through an owner vs. through a bank brings a lower interest rate, lower payment plan, simple credit checks, and greater owner commitment to your success. Sunbelt brokers know how to make financing terms work in your favor, quickly and easily.