Tampa Bay Business Group

You have been thinking of buying a business and have been asking yourself “what type of business do I want?” , “how much of an investment do I need to make?”, “how much time will I need to invest?” . The best thing to do first would be to evaluate your financial needs along with the amount of liquid capital that you have available to you to invest. Along with SBA financing, many business sellers are willing to do some type of financing for the new owner and this opens doors for buyers to use the financing to leverage a better business purchase with the available funds. Example: your income needs are at $150,000 per year, your available funds are $200,000. If purchasing a business cash, you find businesses earning on the top end say $100,000-125,000 per year. Unless the business has potential to grow or you think you could lower overhead to bring the income to your desired level, you may have to make some “life changes” or compromises to be able to live on the present income of the business. In another scenario with your $200,000 investment, you may find a business earning $250,000 per year with a $600,000 pricetag but the business is lender approved and the seller would be willing to hold a small second. Now, you could put say $150,000 down on this business and have a yearly income of about $180,000+ after debt service. Which would you choose? Your cash on cash investment would make much more sense in the second scenario. When choosing what type of business you want to purchase, I suggest you take a look at your personal work experience and envision yourself running the day to day operations and do not purchase based on numbers alone. In my experience, no matter how much money one makes, you will not be successful unless you have passion and some knowledge in the new venture. With that said, many people with passion and knowledge in a certain field are more than willing to purchase an underperforming operation and bring it to a highly profitable level. It may take weeks or even months for find the right opportunity but when the right one comes along, make your offer and do not procrastinate! chances are that someone else has been looking and thinks the same thing you do about a particular business. For more info or to discuss  your personal situation in confidence, give me a call on my direct line at 727 403 9933 and visit my site to search many businesses for sale in the Tampa Bay area at http://www.tampabaybizsales.com . Your Tampa Bay Business broker is here to assist you with the most important purchase of your life!!