Controlling Your Financial Future Through Buying a Business
The year 2011 is here and if you’re like me you are hoping for continued health and peace in your life, but also for prosperity. Given the economy of recent years, I’m sure we are all hoping for a better financial future. At the close of 2010, the unemployment rate in our country was at 9.4%. This is slightly lower than the 10% unemployment rate at the end of 2009; but both numbers are quite a jump from two years ago with 2008 ending in a 7.4% rate.
Though it can be said that there are jobs out there if you’re willing to go get them, I truly feel that I am one of the lucky ones still. I have a job and it’s a bit ironic that from where I sit at my job at a business brokerage, I see very clearly how the economy has affected many other people, as well as our business itself. This isn’t a forum on the reasons for the economic decline I believe we have suffered, but merely observations. So many people have lost their jobs and one of their options is to take what they have and invest it in purchasing their own business so they have a sense of control over their financial futures. I have people contacting me from across the country looking to move to the Raleigh area and buy a business. According to portfolio.com, in 2010, Raleigh’s metropolitan population has increased by 37% since 2000, outgrowing any other major market. The city has become known as being the major metropolitan market that offers the best quality of life in the country. For the last several years, Raleigh and its surrounding areas have also topped CNN’s and Kiplinger’s lists of best places to live or launch a business. It’s no wonder that a significant portion of my contacts are people from out of state.
Having said that the Raleigh area is becoming increasingly popular, that of course doesn’t mean that buying a business is quick and simple. There are so many factors that go into it, too many to discuss in a blog, but the obvious ones are type of business/industry, location, price, and size. Someone recently said, and we have always completely agreed, that buying a business is a very emotional purchase, as well as being one of the most important decisions in your life.
There are many ways to begin the search; just check online on any of the sites that offer businesses for sale. The process, beginning with you signing buyer documents, including a confidentiality agreement, will unfold as you begin communication with the brokers or sellers in charge of the listings. Keep in mind that even though brokers generally work for the sellers, that doesn’t mean you aren’t treated fairly and with honesty. Even so, make sure that as a buyer you get all the information you need to make the right decision for yourself. It’s the seller or his agent’s job to supply you with financials and other information that may be necessary for you to make an accurate assessment of the business they are marketing to you.
If the process is too overwhelming for you or you just don’t have the time to sort everything out, there are brokers who will either represent you in a transaction or at least work for you to help you understand all the information that comes across your desk. These brokers work as buyer agents. Their fees will vary depending on your situation, where you are in the process, and what you ask them to do on your behalf.
There are options out there for moving to the Raleigh area, to set up your own shop, and to take control of your financial future. There are people available to assist you in the process. Just reach out to the ones that offer you honesty, professionalism and have your best interests in mind.