Can you even buy a business it’s not for sale? Sure! That’s pretty much what’s happening right now with the client. I had a buyer that was looking to purchase an espresso stand and had gone through the basic steps to purchase this one particular stand. After looking at all the profit and loss statements and its general business ethics of this particular business, the numbers just didn’t add up but my clients still wanted to buy an espresso stand. So here’s what we are doing.
I do a lot of research on businesses for my clients to find out as much as possible. Do they want a franchise, a chain, or an independent property? I look at all the information for each business before approaching the owner. The more information I have about the company the more impressed the owner might be about the preparation and their desire to sell.
I make sure we have a detailed business plan to submit to the business owner including any relevant experience or education. I also want to include financial information to demonstrate my client’s ability to make the business purchase.
Once we have our information and all of our ammunition, we choose an approach for communicating with the business owner the best way possible. This usually involves writing multiple letters detailing the desire to purchase the business. Real estate agents can either use an intermediary or simply approach the owner ourselves. The letter is a formal approach and very useful when you want to impress the owner with your offer.
You never know when a business owner just needs a little bit of a push to sell their property. Perhaps they’ve been thinking about it for some time and now here’s the perfect opportunity. They won’t have to list the property and pay extra commissions nor go through the hassle of marketing the business.
It’s actually fairly easy to approach businesses with an opportunity to purchase. But, it definitely helps to have a business-minded real estate professional on your side. Because I have purchased and sold hundreds of properties and businesses over my numerous decades in the industry, I can help construct a letter and a good plan of action to approach business owners that may potentially want to sell.