Most aspiring entrepreneurs focus on coming up with the next great idea. They put together a business plan, line up financing, and if they're lucky, get a business off the ground that may or may not survive to its second or third anniversary.
Buying an existing business is generally a more sensible approach. When one buys an existing business, especially an established business with a solid history of profitability and a loyal customer base, one eliminates much of the risk associated with starting a new venture. In addition, obtaining financing for the purchase of an established business is generally much easier and cheaper than trying to finance a new venture.
Buying the right business starts with an honest assessment of your skills, your strengths and weaknesses. It's best to buy a business that allows you to leverage your proven skills, and which allows you to combine your vision and creativity to grow the business well into the future.
Here are some practical questions to ask of yourself before you decide what type of business to buy:
Are you a natural manager of people? Or, are you more comfortable working mostly on your own, without the pressures of managing a large number of employees? What is the ideal size of a business for you in terms of revenues, number of customers and employees? What geographic location would be most suitable for you? Somewhere in beautiful Colorado?
Once you have a clear idea of the type of business that would be suitable for you, it may be wise to engage a Colorado business broker, such as VR Business Brokers located in Aspen, to conduct a search for you. VR works for buyers of businesses just as we do for those wanting to sell their business. VR can eliminate much of the uncertainty and wasted effort that comes with a do-it-yourself search. We filter out businesses that might look attractive to you at first glance but which may not be suitable after a complete due diligence process.
We pinpoint the viable options for you and help you understand the business that might be right for you. We negotiate on your behalf to buy the business on the most advantageous terms for you, and in a way that ties the seller of the business to your continued success after you assume ownership and management. Here's a link to a Harvard Business Review interview that details why one should consider buying a business and how to go about it.
We would welcome you to call us at 970-429-8220 to set a time for for a confidential consultation about buying a business, or if you're not quite ready to start thinking seriously about buying your own business, we would welcome you to email us at firstname.lastname@example.org with any questions that you might have. We look forward to hearing from you!