Will
the business generate income to pay the debt and
leave you enough to make a living?
If not, the business
may still be a good takeover candidate.
The question is.
Why not buy a business? When you buy an operating business
you have the luxury that you are starting with a proven
concept that has vendors in place with customers that
already patronizing the business and most of all you
have immediate cash flow. Yes, the most compeling reason
to buy a business is that you have instant cash flow.
Sometimes it may not be
as great as you would like it,
however
when you buy a business the price you pay for the
business is reflected in the amount of the cash flow
that is being generated by the business. Buying a
business allows you the opportunity to take a successful
and proven concept and grow it with your talents.
One statement that
has always been said
when someone
buys a business is that we can guarantee them that
one of two things is going to happen after they
purchase the business. "It is either going
to do better or worse". Why do we say that?
Because depending on your talents and how much
time and attention you devote to the business will
be reflected in the future success of the business.
You can start a business from scratch and be very
successful, but you will more than likely do without
the cash flow that comes with an existing business,
which sometimes is the make or break point in whether
the business is successful or not. Remember"cash
is king" and you must generate cash flow to
survive.
So consider all aspects of getting into
business. Start a business or buy a business and you
will see that predominately that the long term success
is on the buying of an operating business that the new
owner can build on using their talents and strengths.
There are many benefits to owning
a business:
• Earnings
potential limited only by self
• Rewards tied to performance
• Independence in decision making
• Broad range of activities
• Control of one’s security and future
• Tax shelter options
• Estate builder
• Opportunity to work in a field that you choose
• Provide jobs for family members
• Can provide flexible work schedule
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wasn't covered here?
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