When Buying A Business, There Are Many Opportunities Available. | The Virtual Miss Friday Blog

When Buying A Business, There Are Many Opportunities Available. | The Virtual Miss Friday Blog

July 14, 2010
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When pursuing purchasing a business, there are always several business for sale opportunities readily available, including purchasing a highly profitable resale franchise. When you buy a business that is already profitable, you reap many advantages over buying a new franchise that has no track record in a new location.

There are many reasons why franchise owners put up their business for sale. It could be retirement, health reasons, a move, or other lifestyle changes where they can no longer own a business. A successful resale franchise is ideal for those looking to buy a business. It combines the desire to own a business, run it, and realize an immediate profit.

A franchise resale business which is up for sale should be dealt with just like any other potential purchase business opportunity. Conduct all the necessary research to obtain background information before buying a business. Analyze the franchise and learn all you can about it. Also talk to the franchise seller for additional details about the location you are considering. Your buy business analysis will help you decide whether a resale franchise is right for you.

A purchase business opportunity that involves a resale franchise comes with an array of benefits. For example, the business valuation is much simpler to perform and analyze. You can value a business by checking out the historical information dealing with the franchise in question, determine the value a business franchise holds and make key decisions with respect to its likely future profit potential. With an accurate business valuation, your purchase business decision becomes much easier.

A resale franchise business for sale also comes with established products or services. It has a recognized brand and a loyal customer base. With a new franchise, your buy business decision would be based on overall performance of other franchises, so there’s no guarantee it will perform as well in your particular area.

In purchasing a business that’s a resale franchise, your buy business portfolio includes an existing infrastructure that works right off the bat. The business valuation will show the existence of suppliers, equipment, operating systems and employees. The value a business retains, such as a resale franchise, is essential since you can allocate more time to developing the business instead of beginning from square one with a new franchise.

With a resale franchise, there is greater opportunity to negotiate in all areas. Based on the value a business holds, you can negotiate with the seller on price, financing, lease term and other factors. With a new franchise, negotiations with the franchise company are rarely welcomed.

If you’re intending to purchase a business that has a turnkey operation where you can buy a business one day and begin running it the next, then a resale franchise is an ideal choice. Often times, you can own a business like a resale franchise for less money than a start up. The buy business price with a resale franchise can be negotiated because you have the business valuation to back it up. With a new franchise, the price to own a business can be much more as unexpected expenses arise.

Considering that 96% of start up businesses fail in the first five years, a resale franchise that is already successful is a solid investment when looking to buy a business. When buying a business, that’s an important consideration to factor into your purchase business decision.

Richard Parker is the President and founder of the prestigious Diomo Corporation – The Business Buyer Resource Center. His celebrated materials, seminars and consulting have encouraged thousands of aspiring business buyers from around the World to pursue their dream of buying a business.