Benefits of Acquiring an Established Small Business

Dear Deb,

Can you share with me your top reasons why it would be beneficial to acquire a tenured, money-making, small business? -Interested Corporate Employee

Immediate Business Cash Profits

An experienced business acquisition lending specialist will provide a properly structured change of business ownership loan project. The business net income will cover the cost of the change of business ownership loan project.

The transitioning new business owner will earn an immediate owner officer salary and have enough business cash profits to invest and grow the business further. This scenario is a clear-cut positive contrast vs. starting a small business from the ground up with no revenue.

Bank Financing with the SBA Guarantee

The SBA (Small Business Administration) loan guarantee is a substitute for the needed collateral and provides the bank lender with satisfactory security to support the loan.

Financing the purchase of an established money-making small business can be easier than requesting a bank loan for a start-up business loan. The bank can review the tenured business's historical financial performance vs. just relying on projections of a start-up business.

High Chance of Business Financial Endurance

Only 30% of small businesses survive after ten years in business. Buying a business ten years or older assures you that there is a strong foundation to continue building upon. Tenured, profitable small businesses have survived the market roller coaster ride.

Small Business Name Recognition

There is an extreme advantage when the business you are looking to acquire is already established and well known in the community. Leveraging existing customer loyalty reviews, current marketing campaigns, top-tenured vendor relationships, and other third-party relationships gives the transitioning new owner a solid foundation to build on.

Established Trained Employees In Place

One of the hardest parts of starting up a small business is building your team of employees. Finding, hiring, and training new employees have already been accomplished when you acquire an established small business. Most often, you will find the tenure of current employees ranges from five to twenty-plus years.

There is intangible value in acquiring an established small business with tenured employees. Through the years of the business owner grooming the business, most often today, small business owners are absentee as they delegate key employees to oversee the small business, reporting up to the owner every week.

Small Business Seller Transition and Training

Sellers of small businesses can be invaluable in helping the new owner transition into the business, offering guidance and introductions to key clients and suppliers.

Sometimes the seller may offer a carry-back note on paper that supports a portion of the buyer loan project down payment to help support the sale.

If you're a corporate employee who has managed people and understands sales and marketing, provides strong customer services skills, and understands small business financials, sales minus expenses equals net income/cash profits; what are you waiting for?

Similar to purchase financing of a home, a business buyer will need a cash down payment toward the overall SBA loan project. There are various sources of SBA-eligible cash down payment.

If you have good personal credit, cash liquid savings of $50,000+, and have been waiting for that corporate career promotion, we need to talk.

If you want to learn more, DM me directly to schedule a 1:1 Zoom call.

-Deb

Deb's mission is to exit as many self-motivated, successful, corporate America employees by promoting them to CEO, small business owner of a profitable money-making small business with direct, SBA change of business ownership financing. 

She believes in 100% transparency as an SBA change of business owner lender from the initial conversation to loan funding.  Deb expects business buyers and brokers to be equally 100% fully transparent with her.  Full transparency, experience, execution, and weekly communication with all parties are the keys to successful SBA change of business owner loan financing.