Buying an existing business is generally a much safer and faster option to being a profitable firm rather than starting a business from scratch. The biggest advantage to buying an existing business is the amount of risk and uncertainty that is eliminated.
When starting a small business you will quickly discover that things just don't happen in the real world the way they tell you in magazines, business books and seminars. Invoices don't get paid when they are due. Advertising doesn't consistently attract the number of customers you anticipate, Sales and profits don't usually flow as projected in your pro forma financials.
Small businesses as defined by the U.S. Small Business Administration are those with fewer than 500 workers for manufacturing and mining companies, 100 employees for wholesale trade, $6.5 million for most retail and service businesses, $31 million for most general & heavy construction firms, $13 million for all special trade contractors, and $0.75 million for most agricultural industries.
Small businesses have been known to generate one-third of the gross national product and create the majority of new jobs in the USA and more than 45 percent of total U.S. private payroll. The American economy boasts a wide array of business enterprises and fuel costs are creating havoc for some proprietorship.
The number of small businesses for sale has increased over 500% over the past 12 months. In California licensed real estate brokers can sell businesses. Have you considered to adding the sale of businesses to your real estate practice? Do you feel comfortable and competent in assisting a seller in selling a business entity?
Comments(1)