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Top Considerations When Buying a Business in Boston
Many people like the idea of owning their own business, but not everyone is cut out for starting one from the ground up. If this sounds like you, you may want to consider buying an existing business in the Boston area.
Buying a Business in Boston?
Here are top considerations you don’t want to miss
Many people like the idea of owning their own business, but not everyone is cut out for starting one from the ground up. If this sounds like you, you may want to consider buying an existing business in the Boston area.
There are several perks to this particular option. The business will already have a customer base, you will have actual numbers to work with rather than estimates, and you may be able to obtain certain patents related to the business. Get started by considering the following issues.
Location
Think about whether you want a business that is in your community or if you are willing to move. You could also look into a business that isn't tied down to one specific location. The location where you choose to conduct your business will impact many variables, such as taxes, labor costs, and other financial points that could affect your bottom line.
Size
Would you like to own a large enterprise or would a small family business be more your style? When looking for local businesses for sale in Boston, be realistic. Large companies make more profits, but they also come at a higher cost and involve more stress.
Industry
Don’t choose an industry simply because you like the sound of it. Choose a business that deals with an industry you already have experience with. The industry you choose will determine factors such as how many hours you will work.
Once you know what size business you want, what type of industry you are looking for, and where you want it to be located, it is time to start shopping. A business broker can prescreen possible business options and help you find in Boston that are within your area of interest. Login to BizNexus by visiting its website at https://biznexus.com/ for help finding these local businesses for sale that are just right for you.
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BUSINESS ACQUISITION
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THE BIZNEXUS ROUNDUP
Quick & dirty interviews, war stories & tips from the trenches of business acquisition, growth & sale. We aim for value, efficiency & fun, so you'll walk away with something useful to take with you along the journey of buying, growing & selling a business.
Most Profitable Business Industries in Demand
From the tech sector to pet care and beyond, the exponential profit growth predicted make these top business industries the highest in demand.
Most Profitable Business Industries in Demand
From the tech sector to pet care and beyond
From the tech sector to pet care and beyond, the exponential profit growth predicted makes these top business industries the highest in demand.
Are you interested in starting your own business? Forbes reported in October 2018 that 80% of small businesses fail within the first year. Don’t let this quash your entrepreneurial spirit.
One option to consider is buying an established business. This allows you to explore business industries and tap into a successful opportunity.
Continue reading to learn more about making a profitable business investment.
Considerations When Buying a Business
When considering buying a business, it’s important to ask questions. Why is the business for sale? Are industry outlooks rising or falling?
It’s important to know about the business’s debt. Debts can include liens, writing off bad debts, and past due accounts. Are there any lawsuits historically or ongoing?
Does the company have current contracts, and does it only operate through contracts? Is there zoning or other industries regulations you should know about?
Look into the business’s target market. Is this location providing a stable, growing, or shrinking buyer pool? Does the company have a diverse customer base or only a few key clients?
If the company owns the intellectual property, proprietary methods, or exclusive products, will the ownership transfer? Can you assume any leases or mortgages held by the company? How many employees currently work for the company and are they unionized?
An attorney and accountant can provide an in-depth investigation before you buy.
Profitable Business Industries to Explore
Buying a profitable business allows you to reap the benefits of the previous owner’s work in starting the company. Here are some industries with positive growth outlooks.
Pet Care Market
The Pet Care Market Report shows a predicted positive market growth. The compound annual growth rate (CAGR) is expected to be 5.4% between 2019 and 2025 worldwide.
This comprehensive study looked at market drivers and restraints, opportunities, and product demands. It also examined the market size, forecasts, and trends.
Identified market drivers include:
Customer’s humanization of pets
Increasing pet adoption rates
Increased e-commerce for pet care products and service sites
The high price for pet care merchandise and services turns some customers away. This may be a market restraint in low-income areas.
Many customers now want “natural” pet products. Many people feel overextended with work and family commitments. They're showing more interest in pet care services and represent a market opportunity.
Remodeling Industry
The global remodeling market was valued at 3 trillion US dollars in 2017. The CAGR is expected to increase by 4% between 2018 and 2024.
The heightened focus on energy efficiency has driven the development of new technology. Consumers are remodeling to become more energy-efficient and decrease long-term costs.
Individuals also remodel for trendy designs, more durable materials, and increased security. Many customers have suffered a loss due to natural disasters. Employing new technologies that make homes and businesses more disaster-resistant makes customers feel secure.
Tech Industry
Technology is now part of our work and home life. New innovations and solutions will continue in this growing industry.
When considering the global economic trends in tech spending, Forrester reported mixed reviews. The weakening global economy leads economists to predicted a fall from 5% to 3.8% in tech spending by 2020.
However, positive trends are forecast for the U.S. tech industry’s growth. Forrester states that more than 2/5 of tech dollars worldwide go to U.S. companies.
The Forrester report projects consumer spending to reach $1.46 trillion in 2019. This represents a growth rate of 6.3% compared to the global rate of 3.3%.
Are You Interested in Buying a Business?
If you are ready to invest in established business industries, we have the resources you need. Our company provides a list of businesses for sale.
Before placing a business on our list, it must be fully vetted. Professional intermediaries examine each company to ensure we are offering valuable investments.
Our purchase price for listed businesses is comparable to other similar companies on the market. Professional business brokers or accountants provide the price range for each listing.
Continue looking through our site today for businesses or franchises that interest you.
BizNexus -Learn More From Our YouTube Playlist:
BUSINESS ACQUISITION
Have you checked out our podcast?
THE BIZNEXUS ROUNDUP
Quick & dirty interviews, war stories & tips from the trenches of business acquisition, growth & sale. We aim for value, efficiency & fun, so you'll walk away with something useful to take with you along the journey of buying, growing & selling a business.
How to choose the right business broker to help you buy a new business in 2019
A business broker is typically working with multiple buyers and sellers of businesses at one time, and communication can slip through the cracks. Buying a business can be a very long, tough process, and having the right business broker there to help feed you potential deals, offer guidance and insight into market conditions can be a great help.
Top Guide On How To Find a Great Business Broker in 2019
Find Your Soulmate Business Broker
A business broker is typically working with multiple buyers and sellers of businesses at any given time, and communication can slip through the cracks if you’re not linked up with a proactive, smart and organized intermediary. Buying or selling a business can be a very long, tough process, and having the right business broker at your side to offer guidance and insight into market conditions, negotiations, and buyer and seller options can be a game-changing solution if you can find the right fit.
Find a business broker to help buy a business
An often overlooked option to help begin the journey towards buying your own business is to simply reach out to a business broker for guidance before you begin your search. If you can identify a quality business broker this can be a way to help jump-start your search and increase the chances of finding a successful acquisition. Brokers typically represent multiple deals within their category of expertise simultaneously, and if you’re able to establish a relationship with a productive broker you gain access to a continuous stream of deal-flow. The trick is to identify that standout broker.. The one who’s knowledgeable, productive, and won’t waste your time pitching you sub-par, low probability deals for sale.
Speak directly with recent references.
Don’t even bother with a business broker if you can’t verify if they’ve historically done well by their clients on both the “buy” and “sell” sides of the transaction. Ask to speak with owners of businesses the professional recently helped buy or sell, and check for relevant reviews online. If you’re researching the professional’s profile online on his or her company site, LinkedIn, or Biznexus definitely prioritize DEAL experience over education, listed skills, or any other potentially biased information manufactured by the professional him or herself.
Make sure the professional keeps working for you
Set communication expectations from the outset. A business broker is typically working with multiple buyers and sellers of businesses at one time, and communication can slip through the cracks. Set up a recurring weekly, or monthly meeting with the broker to review his or her listed deals. Even better, as you develop your relationship with the broker over the course of regular calls you position yourself in the front of the line to hear about the deals the broker may be working on, but hasn’t officially listed… Getting first crack at an unlisted deal is a great way to get a head-start on developing a relationship with the seller, and to potentially avoid a bidding war with competing buyers if you can negotiate terms before the competition gets wind.
Buying a business can be a very long, tough process, and having the right business broker there to help feed you potential deals, offer guidance and insight into market conditions can be a great help. Do your homework before you choose any professional to help you with the process, and make sure you’re clear on expectations and compensation from the outset. Standard shameless plug: We recommend you check the BizNexus directory before making contact with a potential business broker for any helpful reviews, ratings or content that could provide guidance.
A few useful links if you’d like to dig deeper on the topic:
What you Should Know About Working with a Business Broker. -Inc.
How to Find a Business Broker. -Entrepreneur