Buying a Business and Financing it Too!
Sponsored by Coastal Community Capital and the Cape Cod Chamber of Commerce
Buying a business is often a simpler and safer alternative to starting up a business. According to the US Small Business Administration, “The main reason to buy an existing business is the drastic reduction in start-up costs of time, money, and energy.
In addition, cash flow may start immediately thanks to existing inventory and receivables. Other benefits include pre-existing customer goodwill and easier financing opportunities, if the business has a positive track record.
However, the biggest block to buying a small business outright is the initial purchasing cost. Because the business concept, customer base, brands, and other fundamental work has already been done, the financial costs of acquiring an existing business is usually greater then starting one from nothing. Other possible disadvantages include hidden problems associated with the business and receivables that are valued at the time of purchase, but later turn out to be non-collectable.
Learn to:
• Buy the right business or franchise
• Investigate its historical performance, operations, current status, staff and management, competition, industry and its future potential.
• Secure appropriate financing.
Presented by:
Marcia Rosman, Certified Business Evaluator, Nash and Company
Anne Hunt, Lender Relations, U.S. Small Business Administration
Jeannine Marshall, Executive Director, Coastal Community Capital
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