If you want to have a business of your own, that doesn’t mean you have to build it from scratch. You don’t need to create an initial plan then have lots of headaches because you don’t know what to do next. You can, instead, buy a franchise. With a franchise, there’s someone who has already done all the work to build a foundation. Maybe there’s a business for sale that’s just perfect for you. We’ve written this article to give you a better idea on how to build your empire after you’ve purchased a business from another person.
See what your options are
A business can seem successful on the outside – that’s why you need to do some digging. Together with the business, you’ll also get intangible assets (brand recognition and customer base). It’s true; risks are lower than they’d be if you started from scratch, mainly because you’ll have an established cash flow. All you’ll have to do is focus on the future.
After you found one business that suits you best, you need to look into the projected financial statements, canceled checks and lease conditions, profit and loss statements from previous years, and the tax returns. You need to learn as much as you can about the future business – and not only what the seller is telling you. You can hire an attorney to guide you here.
Are you really ready to buy?
So it happened that you found a business that meets all your requirements. You’re probably asking what you should do now, after looking into all the things mentioned above. If it meets your specifications, you’re probably thinking about whether you should buy it outright or just its assets.
The difference is in the fact that, if you choose to go for the business as a whole, you’ll get the assets and the contracts, together with its debts. Perhaps there are unpaid loans that you’ll need to take care of. If you choose to go only for the assets, you’ll only buy the equipment and the property. This means that you’ll have to create a new company, and maybe ask for new loans and contracts, because the old business, the one you got from the seller, doesn’t exist anymore.
Buying an entire community
Another thing you can do is buy a whole franchise.
A franchise is when you buy the license for a large trademark business to sell its products (or services). This means that your business already has a brand, a name, some experience on its back (plus customers) and the support it needs from other franchises. If you’re looking at a specific market, such as a business for sale in San Diego, then you’ll need to do research on what franchises are viable there.
It’s good to know that the success is higher for a franchise, rather than for an independent business. But even if it’s a franchise, you’re still the owner – it’s still your business. That being said, an independent business can often provide its own rewards and be tapped into a local community. The choice is ultimately up to you, and both a franchise business and a small business offer different types of experiences to own and operate.