Buying a Business in Lafayette
Would you like to own a Lafayette area business? We can help you find the right fit for your interests, experience, and finances. If you buy a business in Lafayette that is already operating, you can bypass the challenges of start-up and start receiving cash flow right away. There are many other reasons to buy an existing business.
Your resources are already in place. Although you are usually free to make changes, an existing business often has relationships and accounts with reliable suppliers in Lafayette, Louisiana. You can skip the trial and error and use the services that were already working well for the previous owner. You won’t have to establish credit from scratch, as your suppliers are already familiar with how well the business is producing
Your employees and customers already have relationships. If you buy a business in Lafayette, Louisiana, you will probably have employees who know the business and its customers well. A solid customer base and a staff that knows and anticipates their needs is a perfect environment for a new business owner. If everyone loves Sarah and she continues to answer the phone or work the cash register, this can be a tremendous asset during the transition of ownership.
Permits and licenses are already established. When you buy a business that is already operating, you don’t have to worry about finding and getting approval on necessary permits and licenses you need. Many licenses can simply be transferred, and you can feel confident that most re-applications will be granted based on prior approval.
How To Choose The Right Lafayette Business
If you want to enjoy the benefits listed above, you will have to be careful to choose the right business. This includes research to ensure that it is a well-run, profitable operation. However, there is more to finding the right business than operational efficiency and cash flow. If the business is not well-suited to your needs, a smooth-running system can quickly fall apart.
Your search should begin by asking questions to identify what types of businesses you would enjoy owning and operating.
In what environment do you thrive? Do you prefer to work outdoors, perform calculations in an office, or whip up creative dishes in a kitchen? Most businesses require hard work. Make sure you will be in an environment that is most natural for you.
How much contact with the public do you desire? All businesses require contact with customers. Some require a higher degree than others. If you prefer to work quietly and minimize interaction with people, we most probably have a listing that fits your needs.
What skills and experience do you already possess? If you can find a business that is in a niche you are already familiar with, you will have the best chance of success. You don’t have to choose something that lines up with your current profession, but it should at least be a business in which your skill sets will give you the greatest opportunity for success.
Build Out? Most businesses occupy leased rent space. The business owner has to finish out (build out) that space to their individual requirements. This can take a considerable amount of time, effort and money. With an existing operating business the build out is done.
Furniture, Fixtures, Equipment, Inventory? When buying an existing, ongoing business, all of this is already in place.
How to Evaluate the Feasibility of a Lafayette Business.
Once you have narrowed the choices to businesses that are suitable, it is time to evaluate the business itself. There are some specific aspects you should consider.
Why is the Owner Selling? The first thing you should find out is why the current owner wants to sell the business. It could be for retirement, relocation, or to pursue other interests. However, it could also be a decline in demand, an increase in competition, or the fact that most of the business’ equipment will need to be replaced. Make sure you know the full details before moving forward.
How much working capital will you need? Some businesses and near future industries will require much more than the purchase price to function. Ask how much capital is necessary for inventory, overhead, etc . Find out how long it takes customers to pay invoices and what payment terms their suppliers offer. These questions can offer insight into cash flow that you might not see by looking at a balance sheet.
Are there off-season times you will need to consider? Make sure that you know more than just total profit. Ask about seasonal cycles during the year and how much income you need to set aside in the most profitable months. Find out if there are times when you need to hire more help or reduce staff.
The many facets of evaluating a business for purchase can seem overwhelming. They are not impossible. Sunbelt Business Brokers of Lafayette can offer the experience and support that you need for a successful purchase.
Contact Us to discuss your Lafayette business interests.