Selling or Buying a Small Business/Why do people sell their business?
Hi.. I'm looking into starting a business and happen to found out that you can also buy a small business that other have started. So I'm gathering info on it to decide what to do, if I'm going to start a business or buy one.
my concern right now is why people sell their business?
does it mean that kind of business will not work so I should not buy it? or they usually sell it because it did work and want to earn large amount of money that instant so they sell the business?
Thank you for contacting AllExperts.
Why a person wants to sell a business is always something to find out and look into. The "best" reasons are retirement, sickness or death, divorce and partnership split. Being tired of the business is not a good reason, and not a good sign. In general, if a business is increasing or very stable, it is a good sign. If a business is decreasing, it is a bad sign but you must determine why. If it is not managed well, you may be able to do better. If it is a dying industry, or has new and strong competition, you may not be able to make it better.
The decision between whether to start a business or buy one basically has to do with your own self confidence, creativity, imagination and business skills. If you are low in these, it may be better to buy. If you have successfully started other businesses, it may be better to start one. If you start one you need enough money to create it then get it to the point of making money rather than using up your money. It is not possible to know how long that will take. If you buy a business, it will cost you more initially but also should be making money from your first day. So, it is a decision based on many things.
I suggest you locate and meet with an experienced business broker in your area who you can talk with in person, and get some guidance.