Time to Buy a Business? / www.DjbRealty.com
Everyone who has a pulse is aware that these have been tough times in the economy over the past few years. The question is this...."Has this presented businesses worth buying"?
In an answer...yes AND no.
The yes argument states that you can now purchase a business at a fraction of there asking price only a year ago. Common restaurants that were offered at 250k plus can now be bought for under 100k. Some franchises can be bought for 1/3rd of buildout cost! WOW!
So on a simple asset test the answer is an easy yes...
The no argument states that the reason that you can buy a business at a fraction of yesterdays price is simply that the last good revenues were...well in a word...yesterday. With most small businesses losing money or at best making a little...why buy now?
It comes down to this...
Your PERSONAL risk vs. reward.
Is it worth the risk for you to buy now at discounted prices while carrying loses or waiting for the economy to turn? Only you and your team can answer that.
the only other answer is to wait for your desired business to be spinning off tremendous cash flow and the economy to be flourishing....however the businesses will then be selling at a Premium instead of a discount.
Either way....it has to meet your goals and objectives.
Have a great day!
DJB Realty, LLC is a entrepreneur business brokerage located in Tampa Bay, FL. Services offered can be viewed at www.DjbRealty.com.