Business Startup Alternative: Buy an Existing Business

January 29, 2012

Starting a business from scratch – home business or small business – is often an iffy and possibly pricey process.  Legal issues, licensing, permits, location, building a customer base – to name a few – are time-consuming with no guarantee of success.  Even if launching goes well, the break-even point could be some years away, even with the best of research and planning.

There are other options for would-be entrepreneurs: buying an existing franchise or business.

Purchasing a current concern has advantages and some drawbacks also.  We’ll step back from the ‘yeah – that’s it!‘ moment and examine the issue.

Why to Consider a Purchase

- Ideas – you suffer from a lack of solid business ideas for a geographic area, level of expertise or interest

- Age – when laid off after a certain point, age discrimination exists.  Period.  Consulting may be an option, but you are not likely to be a new hire at 60.

- Opportunity – that little corner cafe you’ve always loved is up for sale and makes great muffins …

- Income – retirement income may not be enough.  Do you need to supplement?  A business income may be appropriate.

Considerations

- Money – when starting any business, some amount of money is needed.  Reserve funds are important to have in case of emergencies.  Upfront capital may be necessary too.

- Tax advantages – part of a purchase may be financed with ROBS or Rollover as Business Start-up.  This takes money from a 401k plan and invests it in a new venture.  The regular early withdrawal penalty doesn’t apply in these cases (check with a qualified professional to confirm).

- Paperwork and due diligence – ensure you are getting the best deal by working with a broker or carefully researching the market, the customers, the vendors, and the legal options. 

With the global economy still mired in mud, the business market is a buyers market.  Are you interested?  Here are some good resources to start with:

- International Business Brokers Association or ibba.org

- BizBuySell.com

- Business-Broker.net

Buying businesses is an excellent alternative to starting one up, provided the time and circumstances are right.  Take a look at the idea, it may be worth your time.

By Dion D. Shaw

Dion Shaw is the founder and owner of Homepreneurs

Homepreneurs.  New day.  New Opportunities.

Disclaimer

Homepreneurs does not endorse nor have any relationships with any of the services listed.  Homepreneurs receives no compensation or consideration for its suggestions.  Homepreneurs strongly urges all interested parties to conduct research and accepts no responsibility for any losses incurred.

© Homepreneurs 2010 – 2012


Newly minted marketers can transcend their small business roots

October 25, 2011

Part of the difficulty of owning a small business is that many important tasks can’t be delegated. That is to say, most small business owners must be their own accountants, HR directors, payroll heads and perhaps most difficultly, marketers. This can be frustrating for company leaders who understand what they must do to attract customers but who are aware of the fact that they lack the necessary skills to do so.

This is because the position of marketer requires some basic knowledge of search engine optimization, copy writing, art direction and web design. When put on top of managing a business solo, many owners may become despondent that they will ever run effective brand awareness campaigns. However, gaining the rudimentary skills that make marketing possible isn’t as difficult as one might imagine. Here are some suggestions for ways to make one’s way into the first levels of marketing.

Attend seminars and take classes

High level lectures and lessons about advertising can be in-depth and expensive. Fortunately, company owners who are just starting out won’t need to worry about advanced and complicated ideas. Instead, a start from the bottom will give a good baseline to understand how marketing actually works. Community colleges and traveling lecturers often have affordable lessons available that small business owners can attend.

What makes this such a valuable and interesting method is that advertising isn’t truly very difficult for most people. That’s because we’re assailed with marketing every day and know more about it than we think, mostly because we aren’t conscious of the effect it has on us. An introductory class will give names to many of the ideas most people already have in their subconscious minds.

Explore other examples

Companies that have implemented successful marketing strategies may like to think that they’ve discovered a closely guarded secret, but the truth is that the process of coming up with a good advertising campaign can be read directly from the promotional materials that a business creates. Research the competition and crib liberally from their work (without infringing on copyrights) to help understand how the process of creating an engaging strategy works.

Hold testing sessions

It’s very rare for small businesses to exist without having friends and family who closely resemble a target customer base. Consequently, company owners should realize that they have marketing material test groups at their disposal. Before committing to an advertisement, promotional product, website or other type of brand awareness campaign, run it by trusted people and ask for their honest opinions. The feedback that this can garner will be invaluable to subsequent drafts.

Located in Maywood, NJ, Myron Corp. manufactures quality custom promotional items to build brand awareness and customer loyalty. Producing items like personalized pens or promotional calendars, Myron works closely with businesses to select the right promotional products to acquire, strengthen and grow relationships with customers and employees.


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