When looking to start your own business, you may come across listings for businesses for sale by owner. So what are the pros and cons of this option? Should you buy a business for sale by owner or look elsewhere to meet your business and financial goals?
Pros when it comes to businesses for sale by owner:
Get a Great Deal – If money is tight for you, then you may possibly be able to get a great deal when buying a business for sale by owner. Often with these types of sales, the business owner is also strapped for money or would otherwise typically choose to sell their business through a business broker or commercial real estate listing service. So if they’re cutting out the middleman to save money, chances are they need money ASAP and they’re more likely to agree to a lower payment negotiation from you. Just make sure you don’t insult them by offering too little.
Cons of dealing with a business for sale by owner:
While you may save some money with this type of transaction, you will also lose the normal protection and professionalism you would see working with a broker or listing service. There is also no guarantee that the seller will deal with you honestly or sell you a business that is truly worth buying. Even if the business and seller are legitimate, the business will still cost a considerable amount of money, typically millions of thousands of dollars, and in this economy, that will be a significant drain on most people’s wallets. So for this reason, make sure you do a lot of research and check the background of both the business and the seller. Be sure to hire professionals to do all your inspections to make sure everything is done correctly.
Your best alternative to a traditional business:
With all of this considered, perhaps contemplating businesses for sale by owner isn’t the only route you should take. There are also many high income businesses available that do not come with the usual high capital costs or risks normally associated with a traditional brick and mortar business. One such example that has proven to be very successful for many people, especially considering our current economy, would be the online marketing industry.
Online marketing is becoming a popular solution for many people who want to get out of the rat race of the 9 to 5 job. Often touted as the perfect, “recession proof” industry, Internet marketing is one great way to build a global business with access to a global marketplace. Just think about it: With a traditional bricks and mortar business, your market is usually just the immediate physical audience of your local community. But when your business is online, you can market all over the world, and when you know how to market effectively, your earning potential is limitless!
