There are over 23 million small businesses in the USA; about 10 million of them are non-home-based businesses. There is no shortage of businesses to be purchased. The key is to get in front of business owners, talk to people in the business community about businesses. Decide what type of business you are right for and begin your research.
An undervalued business is one where the foundation is in place, it is operating and bringing a profit, but not running at its full potential. It could be that the owner is tired, or hasn't the will or ambition to drive the business successfully. How often have you gone into a local business and seen that it was making money, "in spite of the owner." They're not serving the customers properly or their product line could be better. Still, they are making a profit. This is an example of an undervalued business; one you could purchase and grow into a valuable one.
Once you have an idea of the type of business you're looking for, you need to find a motivated seller; someone who wants out. They may not want out because it is a bad business; there probably isn't anything wrong with the business itself. There are many valid reasons for selling a business, including death, divorce, retirement and many more.
What is a great price? Different types of businesses have different values. Examples of different businesses are manufacturing, service, retail, distribution or an internet business. We have proprietary software which we've used for over 1,000 transactions and specific businesses to formulate valuation. Simply enter in the data; answer the questions related to the business and it generates a valuation report.
The resources are endless when considering the purchase of a business. The internet, business brokers, classified sections, attorneys, accountants, Chambers of Commerce but most of all people are the best resources. Attend workshops and seminars; learn by networking with others who have businesses and research online.
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This article is derived from an interview between Lance Hood from SuccessInsiders.com and top business buying expert Richard Parker.
From Lance Hood - SuccessInsiders.com
Research, Investment, Buying Business, Business Brokers, Chambers of Commerce, Making Money, Wealth, Business Skills
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