We discussed a good deal last time in the form of looking for potential business reversals. Now, we take a look into big established businesses or well-known franchises.
You’ll see these opportunities everywhere. McDonald’s and Wendy’s usually do this among many many others. Now, there are pros and cons to buying established businesses and franchises like those and, as we’ve seen, they are usually good deals. The thing about them is that they usually involve a high capital and they often have their own way of doing things which you cannot tamper with. On the flip side, they already have a working business which eliminates the hassle of setting things up and the really good ones already have a stable customer base. Once again, the crucial thing to do here is RESEARCH.
Regardless of how well-known the business is, there’s always the off-chance that they are encountering some problems that may become disastrous later on. They could be losing money or are having issues with other things like equipment or manpower. You need to find out what their current problems are and see if they are problems that can be dealt with easily or if they’re the kind that will paralyze the business in the near future. I can’t even begin to stress the importance of research here because the well-known franchises will sell for a HUGE amount and the last thing you want is to lose big on a bad decision.
Be sure to ask for projections and how fast you can get your ROI. Ask around and talk to the people who are in the same industry as the business you’re looking to buy and seek some inside information. You may come across some vital information and maybe even a way to negotiate for a better price. Do this and it’s a definite DEAL!
About Brightblue Transition Solutions
Located on Vancouver’s North Shore we are the premier business broker in the lower mainland, contact us if you need any help buying or selling a business in the greater Vancouver or lower mainland areas.
[…] the previous article of our Business Deal or No Deal Series, we talked about buying an established franchise. For the last article of our series, we will be discussing the opposite end of the spectrum […]