Another benefit not mentioned in this article is cost. Starting a franchise will require you to sink significant cost into the buildout of a new store. This could cost between $100,000 and $300,000 on average. When buying an existing franchise, you will not have to pay for the buildout. You will only have to pay for the performance, i.e., non-fixed assets and cash flow. This could save you a lot of money.
Q. What are the benefits to buying a business instead of creating my own? — Grand Island, Neb.
A. The term franchising seems to be most appropriate in answering this question. Acquiring a business is much like acquiring a franchise. The essentials of the business have already been established and now this cow is ready to produce cash.
These essentials are the meat and potatoes of the business: the brand, the systems, the procedures, product lines, marketing strategies, point of sale, the sales process, types of equipment, facility, uniforms, the selection, the culture, the image. This is the essential value of the business.
The previous owner has developed these essentials over the course of the business’s life at a cost to the owner, and now the business is ready to work like a machine. This is the “secret sauce.”
Read more at:
Small business Q&A: Buy a business or create one? - Omaha.com:
For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.
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