Buying another business comes with certain advantages: you won’t need to buy inventory or equipment or hire anyone starting out and the business has an established customer base and brand recognition. However, it’s vital to determine the business’ health before making a commitment to understand why the owner decided to sell and whether you want to take on its existing issues. The business may have existing liens, insurance disputes, or be losing market to competitors.
Costs can also vary dramatically depending on how much the business is able to provide ($50,000-$700,000+). With some businesses, you may only get equipment and a list of customers from a home-based business. With others, it may come with an office space, fleet of vehicles, furniture, equipment, employees, and even training.
To find businesses looking to sell, you can try:
Starting from scratch may seem like a treacherous road to take, but it can also be the most financially friendly option. Do keep in mind that starting a business will be time consuming, and has a large risk of failure. According to the U.S. BLS (Bureau of Labor Statistics) approximately 20% of new businesses fail in their first year.
Some of your basic expenses for starting up will likely include:
Depending on the type of work you do, you may already have the majority of tools, supplies, and safety equipment you need to start your other business. Otherwise, this investment depends heavily on the type of work you do.
Options for obtaining tools and equipment cheap include:
And if you still have yet to set up a bank account, we’re not sure what to tell you.
Odds are you already have your trade license and have taken the necessary exams and paid the necessary fees. So, you’ll just need to purchase a business license, get any regulatory permits and approvals, take and pay for any business license examples, and pay the licensing fee. This varies dramatically across states, counties, and cities but typically costs anywhere from $50-$500 with the average being somewhere in the $75 range.
At minimum to get started, you need a logo, website with a custom domain and hosting, and business cards. While you can create a logo from scratch yourself short term, you’ll need a professional to design it if you intend to use it on marketing materials so that it looks professional. Additionally, you’ll need business cards and a website with hosting and a domain name, and business cards.
Overhead costs and monthly expenses are an important factor to consider when you’re just starting to set up your financials. Typical overhead costs will include employee wages, insurance, gasoline and vehicle costs, business software expenses, business insurance, rent and utilities. This can also include marketing expenses such as yard signs, direct mailing, equipment stickers, and company branded gear.