March 2011
So you have made the decision to become an entrepreneur. Starting a business is no easy task. If you are serious about operating your own business, you might want to consider minimizing some of the anguish and pain associated with startups by purchasing an established business.
Since many experts have predicted that a significant percentage of the workforce will be working in a self-employment capacity in the next decade, business ownership is becoming increasingly more important to many people.
For a financing perspective, you'll have a much easier time securing capital from lenders by taking over an established business, than starting one from scratch. Not to mention, you’ll dramatically minimize the financial risk to yourself and your finance partners because the company will have proven revenue and a customer base. Many lenders will fund 50% to 75% of the acquisition cost for businesses depending on a number of factors such as the cash flow numbers, assets and security available.
Buying an existing business will dramatically reduce the risk when compared with start-ups since statistics estimate that 60% of start-up businesses fail within the first three years. Additionally it takes two years on average for a start-up to become profitable. Your chances of success are still clearly best when you buy an existing business.
Written by Pierre Elie @ NAI Norwood Group
Contact Pierre at pelie@nainorwoodgroup.com or in the Portsmouth office.
Contact us at:
116 South River Road
Bedford, NH 03110
(603) 668-7000
or
100 Market Street Suite 200
Portsmouth, NH 03801
(603) 431-3001
or visit us at http://www.nainorwoodgroup.com/
So you have made the decision to become an entrepreneur. Starting a business is no easy task. If you are serious about operating your own business, you might want to consider minimizing some of the anguish and pain associated with startups by purchasing an established business.
Since many experts have predicted that a significant percentage of the workforce will be working in a self-employment capacity in the next decade, business ownership is becoming increasingly more important to many people.
For a financing perspective, you'll have a much easier time securing capital from lenders by taking over an established business, than starting one from scratch. Not to mention, you’ll dramatically minimize the financial risk to yourself and your finance partners because the company will have proven revenue and a customer base. Many lenders will fund 50% to 75% of the acquisition cost for businesses depending on a number of factors such as the cash flow numbers, assets and security available.
Buying an existing business will dramatically reduce the risk when compared with start-ups since statistics estimate that 60% of start-up businesses fail within the first three years. Additionally it takes two years on average for a start-up to become profitable. Your chances of success are still clearly best when you buy an existing business.
Written by Pierre Elie @ NAI Norwood Group
Contact Pierre at pelie@nainorwoodgroup.com or in the Portsmouth office.
Contact us at:
116 South River Road
Bedford, NH 03110
(603) 668-7000
or
100 Market Street Suite 200
Portsmouth, NH 03801
(603) 431-3001
or visit us at http://www.nainorwoodgroup.com/
No comments:
Post a Comment