Should you take your idea and blaze a new and unproven trail to build the next Starbucks? Will a franchise stifle your creativity and leave you feeling like you’ve exchanged one corporate strait jacket for another? Can you “save money” by starting your own company rather than buying an operating business that is already profitable?
The May 2011 SBA statistics clearly indicate that buying a franchise is little assurance that your business will succeed. Some of the highest ranked SBA franchise loan failures include Cottman Transmission, All Tune & Lube and Beef O’Brady’s. Most often the best of intentions weren’t enough to drive sufficient customers through the door to generate the mothers’ milk (cash flow) to keep these businesses alive. When you buy an existing business assuming you’ve done your due diligence you are buying momentum, customers and cash flow on day one.
As you look to extend your entrepreneurial wings, don’t let anyone convince you there is one best path or rule of thumb. Your personal circumstance, risk tolerance, talents and financial situation need to be carefully assessed by you with the assistance of a trusted advisor with significant and relevant business experience. Owning your own business can be incredibly rewarding and satisfying but approach it with your eyes wide open, seek wise counsel and choose your path carefully.
Edward Valaitis, CBI – Working with a Certified Business Intermediary is your assurance of the highest level of training, technical skills and ethics in the business intermediary profession. Mr. Valaitis has more than 25 years of extraordinary experience building, managing, and leading commercial lending, accounting and consulting firms. Raised in an entrepreneurial family he takes his responsibility seriously to help business owners realize their dreams and/or exit on their terms. Main Street and M&A services provided throughout Florida. (800) 975-2114 www.EdisonAvenue.com
Edward Valaitis Managing Director of Edison Avenue has earned his Certified Business Intermediary (CBI), Certified Merger & Acquisition Professional (CMAP), Certified Value Builder (CVB). He has more than 25 years of experience building, managing, and selling companies with expertise in business transactions, business valuations and growing businesses. Business Broker serving the United States based in Tampa and Destin, Florida.