How to buy an existing business (business for sale) in Canada? Buying an existing business makes sense if you have experience running a company in the past. Otherwise, you may consider starting your own startup business.
A startup business will give you the time and opportunity to learn and gain the necessary experience. You may do a quick internet search to find out how many companies, startups close doors annually in Canada. Lack of expertise, overconfidence, over-optimism contributes to a good portion of these failures. Consulting with business owners, brokers in the business industry is advisable. Ensure you have what it takes to buy an exciting business with all the expenses and daily operations.
Financing. It usually is more challenging to get a loan to purchase an exciting business. Depending on the buyer’s credit-worthiness and the business-for-sale, the buyer brings in a good portion of the money. So it makes sense to find out how much loan you can secure to purchase an existing business.
How to buy an existing business (business for sale) in Canada?
What kind of business is suitable for me to buy? This is the most common question I hear from my clients. I think a better question is what is my expertise and specialties. If it is feasible, you should stay within your field. After all, you have spent a great deal of time to get to where you are now. In other words, your knowledge is the leverage you may need to get your business to a healthy and profitable stage quickly. Time can make a difference between success and failure. It is fatal to underestimate the time it takes to learn and manage a business from the start.
This brings us to the next few questions, will you be managing the business or hire someone to manage it for you. Would you consider retaining the existing management of the company, or will you hire a new team? Be honest with yourself, how much time you can invest in the business’s day-to-day operation. You also need to consider if you’ll be comfortable with the existing management to run the business. In the long run, the current management may be reluctant to follow the new owner’s changes.
Where to look for businesses for sale? Multiple Listing Service (MLS) is the first place to start looking. However, business for sale listings in MLS, you will find, is not extensive. Next, you can search for websites that are specialized in the industry. These websites have registration options to notify you once a new business for sale is uploaded.
Finally, your professional broker will have broker contacts that will help to extend your search.
Multiple listing service is an organization with a suite of services that real estate brokers use for marketing residential and commercial properties. MLS is also an essential media to establish contractual offers of cooperation and compensation among brokers.
Buying an existing business: identifying the business worth buying? PART 2
The above Real Estate article was provided by David Khosravi, a leader in his field in North York, Willowdale Real Estate, Reach out to David via email: email@example.com or by phone: 416.990.2424