Buying a Business in Chicago
Finding and buying a business in Chicago can be a very difficult job, whether you are a first time buyer or an experienced entrepreneur. A trained, professional Business Broker can guide you through the process and help you reach your goals. Let us do the work for you! At Chicagoland Sunbelt, we are advocates of finding a business that meets your needs and desires while being appropriate for your current situation.
A big advantage in buying an existing Chicago business is that you, as the new owner, have an immediate cash flow and an established customer base. You don’t have to build a business; you simply take over an existing successful business with the present owner’s assistance.
Buying an Existing Business
If you have considered the thought of owning your own business in Chicago, buying an existing business has many advantages over building a business from scratch. A government survey shows that 60% of new businesses fail within the first three years. An existing, established business that is purchased by a new owner shows a minimal failure rate. Some of the advantages of an existing business:
You can review actual operating results, rather than projected results
You get immediate cash flow from the ongoing business activities
You will have trained employees in place
You will have established suppliers
You will have established customers and referral business
You will have existing licenses and permits
The seller will train you in operating the business
Unlike the sale of real estate or franchises, the sale of an on-going business is very confidential for both the seller and the prospective buyer. All inquiries are held in strict confidence. In return for granting you, the prospective buyer, access to investigate the operations of the seller’s business and otherwise private information, the prospective buyer promises to use the information for the sole purpose of evaluating the benefits and risks of purchasing the seller’s business in strict confidence.
Chicagoland Sunbelt can help you explore the potential financing options for a business acquisition. We have relationships with many local and national lending institutions and can facilitate your access to these organizations. We work with a large network of conventional, non-conventional and SBA lenders.
Buy a Business You Like
Many Chicago business buyers think the most important quality in a business is profitability. Certainly, you want a business that will have sufficient earnings to provide for you and your family. BUT, you will risk making a terrible mistake if you do not BUY A BUSINESS YOU LIKE. Visualize yourself running the business in Chicago and taking your friends and relatives to see your business. Do you like what you see? Will you be proud to own that particular business? If not, or if you are not sure, don’t buy that type of business.
You will have to be flexible in finding a business. If you lock onto only one type of business, it will take you much longer to find a business to buy. Using the below broad categories of businesses, we like to start a buyer thinking about what they like and do not like.
Food, Retail, Business Services, Personal Services, Manufacturing, Distribution, Retail or Franchising
Once you have selected a primary category, you can begin to look for a business in earnest. You will find many different businesses within each category that share the primary characteristics of the broad category. You will then have to “fine tune” your selection.