Owning and operating one’s own business can be financially rewarding and gratifying, but business ownership is not for everyone. It requires a high level of dedication and business abilities. Owners and operators small businesses comprise the core of the American Business System. The majority of businesses in the United States are “Small Businesses”. According to the Small Business Administration (SBA), a small business is one a business valued under $500,000. Statistics show that 85% of these businesses will be offered for sale at one point, 5% will be turned over to the second generation, 1% will be turned over to the third generation and most businesses are offered for sale because the owner is retiring.

Benefits of Buying an Established Business:

Immediate cash flow. Can see results rather than projections. Established supplies, customers and procedures. Established credit lines. Proven business, proven product at a proven location. Knowledgeable employees. Availability of Seller financing. Third party financing easier to obtain. Seller’s commitment to provide training to the buyer. 90% of start-up businesses fail within the first 5 years, - only 20% of purchased businesses fail within the same time period.

Benefits of Buying a Franchise:

A franchise allows the franchisee to be in business for himself without being by himself. A good franchise should offer a proven product or service, preferably with name recognition. The franchise company should also provide organizational assistance plus proven systems and procedures to operate and manage the business and most importantly, ongoing support. Franchise are not suited for every business owner, there are advantages and disadvantages that should be considered. A Brief Introduction To The Franchise Industry.

Types of Businesses Available:

About 40% of owner/operated businesses are in the ‘Food and Beverage’ category, 25% are ‘Retail’ businesses’, 25% are ‘Service’ businesses and 10% are in the category of ‘Wholesale, Manufacturing, Distributing or Construction’ related businesses.

When looking to purchase a business, the primary question is generally, “What is the business worth and how was it valued?”

This link should help you understand the basics of how a business is valued. What Is A Business Worth?

The process of buying a business can be confusing and at times, a little overwhelming. It does not have to be and should not be confusing if the buyer is working with an experienced business broker.

The links below should help you understand the process of buying a business.
The Process of Buying a Business.