Advantages of Buying a Cheap Business | So-Cal Business Brokers

It is not uncommon for a business broker San Diego to recommend that you purchase a cheap business. This is because a cheap business gives you the advantage of additional affordability and potential for high return on investment. But what exactly are the pros and cons? Business broker can give you the real truth and also help you find the right cheap business to purchase.

Why should you buy an existing business?
This is obviously the first question you will have to answer even long before you contact business broker San Diego. As you may have already learnt, there are many benefits that come with the purchase of an existing business. The main ones include the following:

The groundwork has already been done to get the business up and running
It is easier to obtain finance as the business has a proven track record
It has already established a market for its products
There is already an established customer base
Business plans and marketing methods are in place
There are existing employee
Many business challenges have been discovered and solved.

Even so, you should not rush into the purchase of an existing business without first looking at the disadvantages.

An experienced business broker can help find the best performing business for you to purchase. He will also enlighten you on the drawbacks of investing in a cheap business. The broker will also make you aware of the disadvantages that come with the purchase of an existing business. The main disadvantages of a cheap business include the following:

You have to invest a huge amount up front to purchase it
You must have at least several months of working capital to boost the cash flow
If the business has been neglected you will have to spend a lot more to revive it.
You may have to renegotiate outstanding contracts
The owner might not be selling for the best reasons
There is a chance not all current staffs and customers will be okay with a new boss.

All in all, buying an existing business is worth it. It is even more attractive when going for a cheap business. Buying a cheap business will not just help you invest in an established business but will also help you purchase it at an extremely discounted price.

The best thing is that most cheap businesses still have an established reputation and location, great employees in place, a good customer base, vendors, cash flow and the facilities and equipment that you need.

Business broker San Diego

What Client’s Say

We Couldn’t Be Happier

"When we thought about selling we had no idea what our business was worth or how to go about selling. What you were able to do was to cut through the fog so that we understood the valuation issue and had a comfort level with the process. As you know we ended up selling for somewhat more than the original valuation and we got all cash and our CPA loved the way our tax liability was minimized. We couldn’t be happier!"

Over $250,000 More

"Our first contact with you shocked us when you suggested that we wait 18 months before selling because you believed that if we hit our projections that the value would be significantly greater. As it turned out we not only followed your advice but also got slightly over $250,000 more than we originally had hoped for. It is seldom that we have had the opportunity to deal with a firm that doesn’t want both money and a commitment NOW. It was clear and obvious that you had our best interests at heart."

You Got the Valuation We Agreed On

"You did a great job on the sale of our business in really beating the bushes for buyers, including a UK company that was an active suitor. You managed to get the valuation that we had all agreed upon and got it substantially all in cash and got the transaction closed with little to no problems or expensive lawyers involved."

Thank You for Handling Our Business

"Our business was smaller than what your firm normally handles but it was a BIG part of our net worth and savings. Thank you for handling our business and we were very pleased and delighted with the results."

More Than Anticipated

"Our transaction was involved as we had different corporate entities located in different states. Our only regret is that we didn’t retain your services before 2012 when we paid $25,000 to a firm in Texas that did a valuation and market analysis for us before then failing to do anything in the way of trying to sell our business. You got it sold for more than anticipated."

The Sales Process