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Tag: investing in women

Seizing Opportunities: Exploring the Vibrant Market of Businesses for Sale

The global marketplace of existing businesses for sale offers vast opportunities to aspiring entrepreneurs and investors. Whether you are someone looking to leave the nine-to-five grind or a strategic investor searching for the perfect investment, this market offers a diverse selection of businesses to choose from, spread across various industries and geographies. 

This article aims to provide a comprehensive perspective on the challenges and opportunities related to buying an existing business and helps you make an informed decision in the vibrant market of businesses for sale.

READ: From Employee to Entrepreneur — Top Tips for Making a Successful Switch 

The appeal of buying an existing business

Purchasing an operational business has its advantages over starting one from scratch. An established business comes with a proven business model, existing clientele, brand recognition and a trained workforce. This makes it less prone to the risks and pitfalls that often accompany startups, especially during the initial stages.

The entrepreneurship journey can be stressful and time-consuming. However, buying businesses for sale in an attractive location allows you to skip the time-consuming process of building a client base, establishing a supply chain and setting up marketing channels. If you properly navigate the acquisition process, you can quickly enjoy the benefits and rewards of being a business owner without the initial growing pains.

Another advantage is access to historical financial data, past performance, market insights and equipment and inventory, all of which play a crucial role in the valuation and revenue projection of the business. This information provides a more accurate picture of the company’s performance, which allows you to make more informed decisions regarding future prospects.

READ: What Are the Safest Industries to Start Your First Business in 2023?

Exploring opportunities

Businesses for sale can be found across multiple platforms, such as online marketplaces, industry publications, broker websites, forums and social media groups. You can also access classified listings in local and national newspapers and business magazines. A few popular online marketplaces for businesses for sale include BizBuySell, BusinessesForSale, and DealStream.

Enlisting the help of commercial real estate agents, business brokers, and professional networks can also prove beneficial. A professional business broker specializing in your preferred industry can bring valuable sector-specific insights and market knowledge, making it easier for you to identify the right business for sale.

Reliable brokers are equipped with vast networks and contacts, which can help you quickly understand the available businesses while minimizing mistakes and misunderstandings. They can also provide valuable assistance during negotiation, due diligence and legal processes.

However, keep in mind that exploring these options can be time-consuming and may require considerable research. Patience, perseverance and a large dose of realism are essential qualities to possess while exploring the market for businesses for sale.

READ: 4 Easy Tips to Avoid Missed Business Opportunities

Challenges and risks

Like any business transaction, buying an existing business has its fair share of challenges and risks. One key concern is the amount of time and money needed for the initial acquisition phase, including negotiations, valuation, due diligence, financing and legal processes. 

Another challenge is determining the reason for the sale and identifying any underlying issues that may affect the business’s future performance. Sellers might willingly disclose certain aspects, but it may be necessary to involve lawyers and accountants to fully understand the business’s true financial position and potential roadblocks.

It is critical for prospective buyers to have a clear understanding of any liabilities that come with the business, such as debts, leases, employee contracts and pending lawsuits. Failing to identify and account for these elements can have severely negative consequences for post-acquisition operations.

Financing the purchase

One of the most significant challenges of buying an established business can be obtaining the necessary funds for acquisition. There are several financing options available to buyers, including:

  • Seller Financing: This is an arrangement where the seller offers a loan to the buyer to complete the transaction, usually in the form of a deferred payment structure.
  • Bank Loans: Buyers can apply for loans from banks or financial institutions to fund the purchase. This often requires a comprehensive business plan, an acceptable credit score, and collateral.
  • Small Business Administration (SBA) Loans: SBA-backed loans offer favorable terms to small business buyers by guaranteeing lenders a certain percentage of the loan amount in case of default.
  • Investors: Individuals or companies with capital can invest in the business in return for equity or a share of the profits.

READ: How Colorado Businesses Can Benefit from Nontraditional Funding and Private Equity Firms

Successfully navigating the market

Purchasing and successfully managing an existing business is a complex and challenging journey, but with proper planning, research and due diligence, it can lead to profitable and rewarding outcomes. The vibrant market of businesses for sale offers incredible opportunities to aspiring entrepreneurs and seasoned investors alike.

Invest time in researching and understanding the specifics of the industry, seeking professional advice and considering all possible challenges before making a decision. This careful approach will undoubtedly help you seize the right opportunity and set the foundation for a thriving business venture. Happy hunting!

 

Robert Surdel is a copywriter/content team leader with a knack for writing compelling and informative pieces. When he’s not spending time in nature, he loves to learn about the past, AI, and the mysteries of the human brain.

Why investing in women is good business

Investing in women makes good business sense because diverse and inclusive workplaces are essential in meeting the needs of today’s diverse clients, communities and other key stakeholders.

Bank of America recognizes the significant role women play in advancing thriving economies – with women owning 37% of all businesses worldwide. It’s why we continue to invest every day in helping them make meaningful contributions within our company and in their communities at large. Here in Colorado, for example, we partner with the Colorado Enterprise Fund, a Colorado-based CDFI, to provide loans and small business support to veteran and women entrepreneurs. We also are an engaged member of the Colorado Women’s Chamber of Commerce through our sponsorship of the Powerful Voices Conversation Series, which highlights the inspirational stories of perseverance and success of women in business.

A snapshot of Bank of America’s current employee demographics shows that women make up 50% of our global workforce, 32% of our global management team, more than 40% of our managers and 35% of our board of directors – exceeding industry benchmarks.

So how did we get here? By bringing talented women to our company, investing in their career growth and providing a range of supportive benefits, while also supporting the economic empowerment of women in communities around the world.

The bank partners with more than 350 colleges and universities around the world to recruit diverse talent, and our most recent summer intern class was 47% female. We have programs designed specifically to support the retention and career development of female employees such as our LEAD (Leadership, Education, Advocacy and Development) for Women Employee Network, which is more than 36,000 members strong. Locally, we sponsor Girls & Science, which offers young people the opportunity to explore what a future career in science, technology, engineering, art, and math (STEAM) entails through mentorships with women in STEAM. We also support transitional employment programs serving women who have struggled to obtain and maintain employment or need training or reskilling assistance through our grants to organizations like Women’s Bean Project, Ready to Work Aurora, Center for Work, Education & Employment, and Mi Casa Resource Center.

But an effective diversity and inclusion program goes beyond recruitment and development and includes progressive workplace policies and benefits so all employees feel supported in managing responsibilities at work and at home. For example, to support working parents through the coronavirus, Bank of America offered its employees childcare reimbursement of up to $100 a day. Similar support was also offered to employees caring for aging parents.

As a leader in financial services, Bank of America also supports women entrepreneurs with capital and resources to help them grow their businesses. I’ve seen first-hand the impact of our support when I helped mentor women business owners through the bank’s partnership with the Cherie Blair Foundation. The program has matched more than 2,700 women in developing and emerging countries to online mentors, including more than 500 of my Bank of America colleagues.

Through our commitment to a diverse workforce, we hope to make a positive and lasting impact on our company, and the communities we serve.

Melvinacarrick1 Melvina Carrick is the Colorado Market Leader for Bank of America.