Buying a Business in Everett
The majority of businesses that sell don’t make headlines.
They’re not multi-million dollar mergers or disrupting industries. They’re everyday businesses owned by everyday people. In the industry we call them “Main Street businesses.” Hair salons. Coffee shops. Etc.
So how about you, have you ever thought about owning a business in Everett?
Many have entrepreneurial dreams of starting their own business or launching an idea, but few act on them.
This is the sentiment Lara Merriam-Smith from The Lab @ Everett shared when we interviewed her on the Podcast.
Starting a small business is daunting. Scary. And Risky. Most businesses fail. It’s a fact.
As a small business owner and business broker I’ve thought a lot about the challenges that come with owning a business. Which is why I believe buying an existing business can offer some remarkable perks over starting a new business from scratch. Here’s just a few reasons why:
Less Risk
One of the biggest benefits of buying an existing business is that the business is already established and can start generating revenue from day one. With many start-ups taking years to break even, an established business can often save you a lot more time and money than a fresh start-up may require.
Boss Training
It’s common for the seller of a business to train the new owner. The seller wants the business to be successful and for their legacy to continue. Buying a business comes with the benefit of getting to learn from the previous owners’ years of experience.
There are Professionals to Help
Just like a real estate broker would help you buy a house, there are business brokers to help you buy (or sell) a business. For most people, this isn’t commonly known information. A broker can be a great resource in helping you learn your options.
Good Return
Because business is risky- even if you’re buying an existing business, you do need to make a good return on your investment. While a traditional investment like a good mutual fund may provide an average return around 10% a year, a well-performing business will often provide a return two to three times that amount, or even more.
Performance Based
When you buy an existing business, you’re buying the business based on its actual performance. So even if opening the business originally cost half-a-million dollars with all new equipment, just like a used car value drops, that same business being sold years later may only be worth $200,000. Again, buying an existing business allows you to mitigate more risk.
Greater Financing Options
Most businesses sell for less than 50% down. In some circumstances, banks will provide financing, and will more likely finance an established business rather than a brand new one.
Having more options for financing the business, coupled with instant revenue, and a proven track record- buying an existing business can really provide some nice perks.
Don’t get me wrong- starting a new business or launching a fresh invention is awesome, too. If you have the inspiration and means- please do it.
Help fill some Everett storefronts.
But if you need something a bit more approachable, while it’s not for everyone, buying an existing business can be a great option for some.
Everett currently has a produce stand, diner, and general contracting firm for sale. Just to name a few.
Maybe your entrepreneurial dreams aren’t so far off after all. If you’re interested in learning more about buying a local business (or selling one), feel free to reach out anytime.
Garret Hunt
KR Brokers, Business Broker
Garret@krbrokers.com
425-308-1888
www.GarretHunt.com
Have you thought about owning a business in Everett? Comment below or on our Facebook.
Garret is a business broker with KR Brokers, a business consultant, and co-founder/CEO of Live in Everett. He grew up in the North end of Snohomish County and lives in Everett’s Bayside neighborhood.
