How To Buy Your Own Business

Having your own business is great. Building one from scratch? Really hard. Which is why some entrepreneurs opt to buy an existing business outright. There are other reasons to buy a business too, like acquiring an up-and-coming competitor, or just building your investment portfolio.

how to buy your own business

At some point, while jumping through legal hoops, you might have forgotten that you just became a small business owner. Congrats! Your new life awaits. And if your brand new business needs bookkeeping, Bench can help with that.

This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. Bench assumes no liability for actions taken in reliance upon the information contained herein.

Buying a business, as opposed to starting something from scratch, can streamline your path to profitability. It can also be less risky, in some cases, if the brand is already successful and established.

You might also want to keep a lawyer on retainer to help negotiate the sale and handle various contracts related to the transition. This extra assurance can give you peace of mind and help you to protect your investment.

If you have the funds to make a 10-20 percent down payment, industry experience or business management skills, and good credit scores, an SBA loan would be ideal. If yours is a large business, you can apply to the big banks (this is one of the toughest sources of financing for small businesses to tap into).

See your funding options for a business acquisition loan. Lendio will ask you a few basic questions, and will narrow down the lenders that are right for your purposes. Doing business this way saves you a lot of time, and it will help you take over your business and start making a profit much sooner than if you take the traditional route.

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Nonna Nerina launched her virtual cooking experience when the pandemic all but ended tourism in her Italian village. Her granddaughter shares how Nonna runs a successful business selling a service online. ? Read Nonna's story

Print-on-demand ideasPrint on demand is the process of working with a company to turn your designs into merchandise like t-shirts, jewelry, or mugs and shipping them directly to your customers. This is a quick and low investment way to start a business. Research print-on-demand companies to find the right fit for your business idea.

If you have a solid idea and no experience with manufacturing, private label or white label models allow you to work with an experienced manufacturer. They can customize generic products to your brand and specifications. There are a number of private label and white label product ideas to consider, from fitness equipment to cosmetics.

Dropshipping is a business model that involves selling existing products on your own online store without handling inventory or shipping. An order from your customer will be fulfilled and shipped by the vendor or manufacturer, skipping you as a middleman. You can get started with dropshipping by finding a product and dropshipping partner.

Another way to start a business without your own products is through curation or resale. Some lifestyle and fashion brands will curate collections from a number of vendors or designers, buying inventory upfront. In this case, you will be responsible for inventory management and shipping. To find brands to work with, browse wholesale marketplaces. Resale business models are popular with antiques, collectibles, or vintage clothing.

Building an audience can be one of the most challenging parts of starting a business. If you have already grown your fan base on social media channels, the hard part is already done! Online tools make it easier than ever to monetize that audience. Drill down to your platform of choice for creator-friendly business ideas.

? Tip: The Shopify Starter Plan is perfect for creators who want to get selling fast without building a website. Or, you can also use a tool like Linkpop to superpower your social bio and push fans to your store.

Market analysis is a similar concept but involves researching the industry as a whole, combining insights you get directly from your target audience with third-party sources like reports and industry publications.

Bootstrapping is the process of starting a business with little or no money and investing the profits back into the business as it grows. This method of funding a business may mean slower growth, but it also minimizes risk and debt.

Shipping is often cited by small business owners as one of the most challenging aspects of getting started. Luckily, the tools aimed at simplifying this task keep getting better. Ecommerce platforms like Shopify consolidate rates to help you make informed shipping decisions. And app integrations can solve specific shipping issues or help you more easily manage inventory.

If you plan to ship internationally, keep in mind that there are a few more steps involved. First, be sure that your products are legal in their country of destination, that you adhere to labeling and packaging requirements in those places, and that you know how to complete customs paperwork.

Andrew Lissimore started his headphones business after seeing the impressive profit margins in consumer electronics. He negotiated a deal to secure a domain name that would help his business get discovered. ? Listen

Brand voice is how your business speaks to customers and the world. It incorporates decisions around tone, personality, brand vocabulary, and slang. Defining your distinct brand voice is important as it can:

Your visual identity encompasses anything that impacts how your customers, and the general public, see your brand out in the world. This includes your logo, fonts you use on your website, photography, and color choices.

Your DIY photos may need a little editing to get them website-ready. You can access free and inexpensive design and photo editing tools online. ?️ Try: Shopify Image Resizer to optimize your product photos for the web.

In a pinch, stock photos are an excellent solution to fill in for photo needs until you can schedule a shoot. You can mine stock photo websites to find images that capture the lifestyle of your brand to use on collection pages, your homepage, or in marketing campaigns.

Your visual brand identity will also show up on product packaging, shipping materials, and other printed marketing assets (like packaging inserts). Customers should have a seamless experience from the initial interaction with your brand online to receiving their order.

In some cases, you may not need to officially register your business to get up and running. For example, in Canada, small businesses making under a certain threshold in revenue are not required to officially register or collect and submit sales tax. However, there are perks to registering your business upfront, such as benefitting from certain protections.

In the US, the requirements to get a business license can vary state to state, and in some cases you may not need one. If you do need a business license, be sure you have the following before starting your application:

? Note: Depending on the business structure, you may or may not be subject to personal liability in legal matters pertaining to your business. Talk to a pro to see if personal liability protection is necessary for you.

Setting up a business bank account is an important first step. At the very least, it allows you to separate your personal and business finances. At best, it allows you to build a good relationship with your bank as a partner in your long-term financial success.

Explore the various business banking products (like a business credit card) available on the market to determine which suits your needs. When choosing the right bank for your business, ask questions like:

A financial plan gives you the power to better manage your business, project expenses, and even apply for financing in the future. This course walks you through the basics from balance sheets to income statements.

An income statement (or earnings statement or profit and loss) calculates revenue minus expenses to tell you how much money your business is earning. These are usually prepared monthly, quarterly, or annually, depending on your business.

Many business owners swear by a simple spreadsheet to manage their small business accounting, and this method is perfectly fine for most small businesses just starting out. If you want more functionality and automation, or you have a more complex business structure, there are several small business accounting tools on the market.

Along with your financial plan, your business plan should also include your overall marketing plan. A marketing plan is the strategy your business uses to get products in front of your target audience. It's a roadmap that helps you set goals and have a back-up plan.

The founders of portable hand sanitizer brand Sanikind launched in the wake of the pandemic, using pre-orders and crowdfunding to drum up excitement for their new business idea. ? Read their story

There are several channels you can use to market a product. But which is right for you? The best place to start is often the channel where you already feel most comfortable or the place where you know that most of your target audience is already spending time. Test each to see which gives you the best return on your efforts and spend. 041b061a72