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Benefits of Becoming Your Own Boss – Buying a Florida Business

So you want to be your own boss. Consider the options – be an independent contractor…start your own Florida business…buy an existing Florida business.

Certainly there are pros and cons to each option. If you do a careful analysis, you’ll learn what many seasoned entrepreneurs have discovered…the risk-to-reward ratio is tipped in your favor when you purchase an existing Florida business.

Independent Contractor

As an independent contractor, your risk is minimal. The up front investment and overhead costs are limited. However, without the ability to leverage the work of an employee base, the returns are limited by your own personal capacity.

Starting Your Own Florida Business

Starting a business of your own can pay great dividends, but it’s important to understand that the risks are significant. Most start-up businesses will fail. According to Michael Gerber, author of The E-Myth Revisited, 40 percent of new businesses fail in the first year and 80 percent fail within five years.

Buying an Existing Florida Business

On the other hand, purchasing an existing Florida business reduces an entrepreneur’s risk while creating opportunities for tremendous profit.

There are a number of reasons to consider the purchase of an existing Florida business rather that starting one:

Proven Concept – Buying an established business is less risky – as a buyer you already know the process or concept works. Financing a purchase is often easier than securing funding for a start-up business for that very reason—the business has a track record. A bank will be able to look at the historical results for the business, not just rely on projections.

Brand – You’re buying a brand name. The on-going benefits of any marketing or networking the prior owner has done will transfer to you. When you have an established name in the business community, it’s easier to place cold calls and attract new business than with an unproven start up. That’s an intangible benefit that’s difficult to put a price on.

Relationships – With the purchase of an existing business, you will also be buying an existing customer base and vendor base that took years to build. It’s very common for the seller to stay on and transition with the business for a short time to transfer those relationships to the buyer.

Focus – When you buy a business, you can start working immediately and focus on improving and growing the business immediately. The seller has already laid the foundation and taken care of the time-consuming, tedious start up work. Starting a new business means spending a lot of time and money on basic items like computers, telephones, furniture and policies that don’t directly generate cash flow.

People – In an acquisition, one of the most valuable and important assets you’re buying is the people. It took the seller time to find those employees, develop them and assimilate them into the company culture. With the right team in place, just about anything is possible and you will have an easier time implementing growth strategies. Plus, with trained people in place you will have more liberty to take vacation, spend time with family, or work on other business ventures. When start-up owners and independent contractors go on vacation, the business goes too.

Cash flow – Typically, a sale is structured so you can cover the debt service, take a reasonable salary, and have some left over to take the business to the next level. Start up owners, on the other hand, often “starve” at first. Some experts say start-ups aren’t expected to make money for the first three years.

Risk – Even with all these advantages, some entrepreneurs believe it is cheaper, and therefore less risky, to start a business rather than to buy one. But risk is relative. A buyer may pay $1 million, for example, for an established business with strong cash flows of approximately $300,000 to $400,000. A lending institution funds the transaction because historical revenues show the cash flow can support the purchase price. For many people, however, that is far less risky than taking out a $300,000 loan with an unproven concept and projections that may or may not be realized.

Becoming your own boss always involves a risk. When you buy a business, you take a calculated risk that eliminates a lot of the pitfalls and potential for failure that come with a start up.

Looking for that special business? Look at the 1000′s of Florida businesses for sale at: http://floridabizmls.com/buy-a-business/south-florida-businesses-for-sale/

Florida Business Buyers

Enjoy the Flexibility and Benefits of Business Ownership

Florida Business Brokers have the resources to guide you to the right business.

We offer:

  • A huge selection of Florida businesses available for sale
  • Individualized business searches tailored to your needs
  • Expertise in the sale and purchase procedures
  • Assistance in obtaining financing
  • Expertise and assistance in negotiations and closings
  • Confidentiality
  • Making the deal happen

Liquor Store/Bar for Sale in West Palm Beach Florida

Deal of the Week: Liquor Store Bar for Sale

Liquor_Store_Bar_for_Sale_WPB

Liquor_Store_Bar_for_Sale

Interested in Learning More about This Liquor Store / Bar for Sale in West Palm Beach Florida?

Call Florida Business Brokers at 1.561.234.5678

Business Description

Liquor store with bar in the back has been established 30 years on busy road. Full 5am liquor license. Owner retiring. Sale includes all FFE, and Liquor License. Inventory is not included in price. New owner should plan on renovations. Lease to be negotiated with landlord. This would be a great liquor store only or bar only location. There is no competition for either in the area. Seller willing to hold a note for inventory. Smoke Shop License. Get ready for medical marijuana.


Detailed Information

Inventory:
Not included in asking price
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Facilities:
4,000 square feet, leased in shopping center on busy east/west road in West Palm Beach.
Competition:
No bar or liquor store for more than a mile anywhere. Great signage on busy road. Well known landmark location.
Growth & Expansion:
5am liquor license is good for a buyer who wants to make the facility a restaurant and bar or who wants to make a large liquor store. Either way the location and traffic will support the new business well.
Support & Training:
Owner to train for no charge.
Reason for Selling:
Retirement

Cashing Out Your Business

Cash Out Options

Selling a company isn’t simple, but a lot of entrepreneurs have more choices than they realize. Taking the incorrect approach could possibly have severe monetary repercussions for both the business owner as well as the firm. So it pays to understand the advantages and disadvantages of various ways of cashing out and which is the best fit for your company as well as you.

An outright sale is possibly the easiest way to exit a business. This approach makes sense when an owner’s family members have no interest in taking it over or when the proprietor cannot identify how you can take the business to the next level or meet challenges that may have come up.

There are 3 means of cashing out:

1. A proprietor could sell the firm’s assets outright, or he could sell his stock in the company (or units if it is a limited-liability business). Stock sales tend to benefit the seller, while possession sales are much more useful to the buyer.

Possession buyers are acquiring the company’s bodily devices, facilities as well as clients, along with intangibles such as trademarks and also goodwill, and therefore are generally shielded from previous claims against the business. For example, the previous proprietors would probably be liable if an ecological claim were made against their former property or if a staff member employed on their watch submitted some sort of lawsuit.

2. Stock purchasers, on the other hand, are buying the business itself and hence are exposed to all its possible problems. This is why most sales of small, closely-held businesses are structured as asset sales.

Offering the business to its managers is additionally a prominent alternative. An owner may go this path when the company has a trusted, entrepreneurial administration group that wants to continue the business.

The most significant benefit of this strategy is that the proprietor does not need to spend time trying to find a buyer. The compromise for an easier sale is that the cost could be below what an outsider would actually pay.

3. Another choice is to market the business to its staff members through a worker stock-ownership plan (ESOP). Setting up these plans could be a complicated endeavor, yet they have their benefits. As an example, they’re a means a proprietor could continue to be with the firm while taking cash out of it. And it’s a method to reward workers and provide a long-term motivation for commitment and effort.

Here’s exactly how it functions:

The business sets up an independent trust on (the ESOP) that buys the owner’s stock at a rate established by an independent evaluator. The trust holds on to the stock for the workers for as long as they work for the company. When a worker leaves or retires, he can sell the stock back to the firm at fair market value.

Some entrepreneurs do not like having a 3rd party figure out the value of the shares, believing that it may imply accepting a lower rate than they would get on the open market. Additionally, the firm needs to have money handy to buy back worker shares when workers leave. This can divert cash money from various other company usages and can be a real drain if many staff members leave in close sequence.

Owners that want to sell their stock slowly, or who want to take some cash out of the business without giving up control, could recapitalize the business, or alter its economic framework making use of instruments such as stock, preferred stock or debt.

For instance, suppose there is an outside purchaser that wants the business however doesn’t like the idea of buying it outright at this time. The firm might provide preferred stock as well as offer it to the prospective purchaser. This provides the owner a cash infusion while the customer has an opportunity to become acquainted with the firm’s operations before taking it over outright.

Or if there’s no such purchaser and the business has healthy cash flow, the business might incur debt to buy all or a part of the owner’s stake.

While there are lots of choices for business owners who want to cash out, the most effective means depends on the nature as well as health of the business as well as the proprietor’s intentions for staying on in the business in some capacity. Understanding all of the alternatives, and obtaining great recommendations from skilled business specialists, could make it much easier to seek the path that’s best for all involved.