Why Buying a Business in a Sluggish Economy Is a Good Idea

Why Buying a Business in a Sluggish Economy Is a Good Idea
by Phil Miller 

Learn why buying a business when the economy’s bad is a smart decision.

Our economy is the worst that it has been since the 1970s. Suggesting that someone buy a business when the economy’s doing poorly may go against conventional wisdom, but the state of the economy doesn’t matter very much when it comes to buying and running a business. What matters is what you do, not when you do it.

A business’s profit directly correlates to its management, and companies succeed and fail based on the qualities of their owners. That’s why it’s essential to buy a business that you’re capable of managing efficiently. Sure, the economy has some effect on a business’s performance, but a business owner’s experience, attitude, and actions are generally the best predictors of success. There are always customers, but you have to be willing to go out there and find them.

There are also some benefits to buying a business during a sluggish economy. Costs tend to decrease because suppliers may give you better deals, rent costs may be reduced, and people may be willing to work for less. Some types of businesses even thrive during economic downturns. Examples include accounting, debt collection, auto repair, healthcare, and bulk food services.

Don’t Play the “Wait and See” Game
 
Despite the fact that business isn’t necessarily bad when the economy’s bad, people seem to be more risk-averse when the economy isn’t doing well. As a result, fewer people are interested in starting and buying businesses. Many would-be entrepreneurs are waiting till the economy improves before they get their feet wet. However, a bad economy didn’t stop Microsoft and Apple from being founded in the mid-1970s – and look how far those companies have come.

No entrepreneur can succeed by playing the “wait and see” game for an extended period of time. Don’t sit around hoping things will get better because there’s no guarantee that the economy will improve any time in the near future. And if the economy gets worse, you’ll wish you bought a business sooner. Any time is the right time to buy a business as long as you, the buyer, have correctly assessed the opportunity.

Whether the economy’s good or bad, the buying process is essentially the same. Purchasing a business is a major decision and investment, so it’s important to ensure that you make the right choice. Determine what type of business will thrive based on your strengths rather than suffer because of your weaknesses. Moreover, choose a business based on its profitability while considering what you’ll be able to do with it. After all, there are good business owners and there are bad business owners. Even a business that is doing poorly can be turned around in the right owner’s hands.

For a complimentary consultation:
Contact  Cecil Williams (cecil@bizbrokerflorida.com) or call  at 888-925-5055 ext.206.  Visit my personal website to search for business for sale in Florida www.bizbrokerflorida.com  Also, visit our Florida Business Exchange website at www.fbxbrokers.com