I looked into buying a business before, and things didn’t work out. The deal went to someone else, and it turned out to be a bit of a money loser anyway. Now, there is another opportunity to get into the same industry, but with a different business. This is looking like a pretty good deal.
The huge downfall to the last business was the fact that it wasn’t really established. It was a business that wasn’t doing too great, so it closed. I would be re-opening it under a new name. However, it was closed for a couple months. The previous operators did that to push customers to their other locations.
I would have to come in, get everything set up since it was sitting closed for two months, and then try to get people to spend money. From what I heard, the buyer of that business who edged me out is down almost six figures on the deal.
So why would I still consider something like it? The new opportunity is for an existing business that is still up and running. Not only is it fully operational right now, but it’s also running at a profit. The owner is being forced to sell, so his offer is pretty good.
There is a complete staff already in place, making it passive income for me. It would be more profitable than the rental properties I previously purchased, but it would also be more risky. The business is fairly constant, but there are certain times of the year when sales drop. It’s very possible I make a profit for a few months and then have a month where I lose money.
Still, the overall potential is high enough to consider doing it. There is also no website for the business. Even though it could be hands off for me, I could still do things like make a site for it that would be at least a little fun and should help grow the business.