With the national economy in a stable position and consumer spending at a noteworthy level, it’s no wonder existing businesses are being bought and sold at high rates. If you’ve been thinking about buying an existing business, make 2020 the year you follow through on achieving your business dreams.
A local business broker from Murphy Business can help you assess your options and handle negotiations so you can start your journey of business ownership with confidence.
What to Consider When Buying an Existing Business in 2020
If purchasing a business is on your list of goals, you’ve likely considered the benefits that come with buying an existing business over starting a business from scratch. However, it’s important to note that in both situations, becoming a business owner can be a complicated and risky venture.
If you’re uninformed about the lengthy procedures involved in this process, you may find yourself having second thoughts after diving in. By following time-tested procedures and doing plenty of research ahead of time, you can ensure you’re making a decision you won’t regret.
Taking a Step-by-Step Approach to Buying a Business
When it comes to purchasing a business, there are often mountains of paperwork to go through prior to any decisions being made. Not only do you want to take the time to thoroughly analyze these documents, but you also want to be able to properly contextualize the information they contain. It’s this data that will enable you to adequately vet the business and confirm it’s a worthwhile investment of your time and money.
In addition to gathering information about potential businesses, you’ll also need to pencil in time to visit with the current owners of the businesses. Time should also be allotted for discussions with attorneys, financial advisors, and other individuals who will be involved in the asset transfer. At every point in this process, you’ll come upon new data that will factor into your final decision.
Because there are so many steps to complete before you can even think about signing on the dotted line, a business broker can be especially instrumental in guiding you through the decision-making process and preventing you from overlooking any important details along the way. A business broker can also keep you on the right track so you don’t lose sight of your personal and financial goals when evaluating your options.
Getting your Finances in Order
Your finances are one of the biggest considerations to keep in mind as you think about buying an existing business. In many cases, additional financing may be required. As it can take a significant amount of time to secure a loan, you’ll want to factor this into your purchase timeline.
Whether you are able to pay for an existing business with cash or need financing to complete the transaction, it’s crucial you are comfortable with the end price. The negotiation process can be quite tricky and intimidating for a first-timer. Trusting in a business broker to negotiate on your behalf will give you the chance to take a step back and maintain the perspective needed to make a decision with confidence.
Understanding the Business Environment in 2020
Committing to a good business opportunity often requires some in-depth research into the industries that are currently thriving and are predicted to experience continued growth in the upcoming years. Several factors can influence the types of businesses in this category, from recent innovations in technology to new niches and changes in consumer demand.
Wondering what the current business outlook is for 2020? Some of the most profitable opportunities on the market are in the following industries:
- Healthcare. As life expectancy rises and baby boomers grow older, there are more and more people in need of high-quality healthcare. Consumers are looking to gain access to healthcare that’s convenient. Consumers are also concerned with general health and well-being making a wide variety of healthcare options available.
- 3-D printing. From prosthetics to food, 3-D printing enables business owners to create and sell sought-after products at a profitable margin.
- Office space rentals. With the increase in the number of individuals working remotely or as freelance contractors, there is a greater demand for short-term office space rentals. This niche allows you to make use of a property investment while securing multiple repeat customers.
Finding the Right Business for You
If you’re ready to buy an existing business but are unsure which field is the most promising in the context of your personal and professional ambitions, a business broker can help introduce you to new industries and explain how they could meet your needs. With the support of an experienced broker, you can ensure your decisions make sense in the current business environment so you’re set up to succeed in 2020.
Learn more about buying an existing business in 2020. Contact Murphy Business today at (888) 561-3243 to connect with a business broker in your area.