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As mentioned earlier, owning a business is an expensive process that can cost anywhere from several thousand dollars to even one million depending on what type of business you want to purchase. With that being said, there are some businesses that offer more complete services than others!
Business owners have been creating and offering their service for years by selling a package or “turn- key” business. These packages usually include all the items needed to run your new business including domain names, professional looking logos, website designs, marketing materials, business cards, etc.
There are many reasons why these turn-key business packages are so popular. For one, it gives potential business buyers a sense of confidence because everything necessary to run the business has already been put in place. Another reason is that most vendors will release all the equipment and resources used to create the business free of charge or at least very inexpensively. This helps budget conscious entrepreneurs start their business on a budget while still having a fully functioning business.
The downside to buying a pre-existing business is that you will probably be investing much of your money into things that someone else had planned to use later. For example, if I owned a restaurant and sold my company including recipes, supplies, and staff, then anyone who wanted to take over would need my restaurant license, insurance, credit card accounts, etc. They would also have to train their own staff which could take time.
Before you purchase a business, you must make sure that you have enough money to maintain it for an amount of time determined by the seller. You should also be confident in yourself and the resources you have before buying a business.
The cost of purchasing a business can very depending on what kind of business you want to buy and how much cash you have available. Some good ways to gather more money is through selling possessions, living within budget, investing or taking out loans.
General expenses such as rent, utilities and internet service will vary greatly between businesses so do some research and find ones that are less expensively run.
You should also look into the other owners of the business! More likely than not, they’ll have similar-size incomes and things like this can help determine whether or not the business is right for you.
Before you start looking at turn-businesses, you will first need to establish how much money you have for business purchases. This includes buying a domain name, renting or purchasing space for your business, paying monthly services such as hosting, legal documents, etc.
It is very common to have a lot of extra cash at hand after achieving success with your business, so do not worry about having an adequate amount saved up before you begin investing in your business.
But remember, just because you have enough money does not mean that it is appropriate to buy a totally expensive business! Buying a low cost business can be a great way to start off your business career.
By starting small, you will learn more about businesses and running a business while spending a lower price tag. Also, being able to purchase a less expensive business gives you the opportunity to spread out investment costs over time. You may even be able to use the profits from one business to help fund another.
As mentioned before, research is an integral part of selling online. If you are not aware of what products and services people in your field are offering, how will you know if you have something new or improved?
Your marketing strategy will be much more effective when you are familiar with the current trends in your area. By investing time into researching your niche, you can start creating content to draw in new clients.
You should always remain up-to-date on developments related to your business sector so that you do not lose out on potential sales opportunities.
There are many ways to gain knowledge about your industry. You can read books, talk to people in the field, and even watch YouTube videos to get tips.
Location is one of the most important things you will invest in as an entrepreneur. Finding a good area to grow your business can make or break how successful you are.
Finding a great area to expand depends mostly on two factors - cost and feel. You want to be able to run your business easily, so areas with easy access to resources and that feel comfortable for you and your team are ideal.
The second factor is whether or not you feel safe there. Are people living close by who have similar backgrounds to yours? This could help promote community support and teamwork.
You also want to consider what kind of businesses already exist in the area. By looking at their advertisements, interviews, and stories, you can get some ideas about what types of products and services they offer and if these match up with yours.
Another way to determine the best place to do business is by talking to other entrepreneurs in the area. There may even be local business associations where you can meet others in your field to learn from them.
The choice of what type of business you want to start is an important one, as your business structure will determine how much liability you have for debts and how tax obligations work for your business.
You should understand that no matter which type of business model you choose, you will still need to file taxes at the end of the year. It’s just how much money you owe in income taxes depends on the business structure you pick.
For example, if your business model is partnership then your personal assets are protected from being seized to pay any potential liabilities. On the other hand, sole proprietorship means there is only yourself protecting your assets so it may be easier to get into debt quickly.
The best option is either limited liability company (LLC) or corporation. Either one of these can be structured as either private or public stock. A LLC with private stock doesn’t require shareholders to bear additional risk while a corporation does.
How to purchase a turn-key business
With all this information under our belt, let us talk about how to buy a turn-key business! First off, you will probably want to do some research on whether or not the business is actually viable before investing too much money.
It’s very common to find businesses that seem like they are doing well online but when you look closer those looks are fake.
Now that you have determined what type of business you want to start, it is time to select your business name! This will be your company’s last name so make sure it is clearly identifiable and catchy.
It is recommended that you use the same first and last names for consistency. For example, if your given name is Jennifer then using Jennifer Smith as your business name is more professional than using lvhndsmith or any other variation.
The reason this is important is because once you purchase your turn-business, someone else has already created a good chunk of the work for you! They even designed the website for you!
By incorporating their own logos and branding, they have invested in your business enough to get you off on a great footrest. You get to keep the profits from these designs, too!
There are many free resources available online where you can search for your ideal business name. Try searching Google “buy a business name tool” to find one such app.
The next step in buying a turn-key business is registering your new business with both state and federal agencies. This includes opening a business account, setting up an office space or location, giving out licenses, etc.
Most entrepreneurs start off owning a small portion of their business. As your business grows, you buy more shares or get additional licenses, hire employees, and expand your offices and facilities.
This isn’t always the case for people who purchase a business already run by others. Some sellers choose not to renew their franchise license or run out of money before expanding their businesses. Make sure to check into this part of the business sale thoroughly!
Business owners are a passionate bunch. They may leave behind things they loved about their workplace and the community they worked in. To be honest, sometimes they don’t love what they do for a living enough to reinvest in their career — which can be hard for someone looking to make progress.
Before investing in these types of businesses, do some research and talk to other business professionals. You want to make sure it doesn’t feel like a drag on them.
As mentioned earlier, before you can register your business as an LLC or buy a turn-up-and-running business, you will need to apply for both federal and state tax IDs! This is not only important to comply with legal requirements but also to identify your business properly!
Most states require that every business has at least one taxpayer identification number (TIN) which is unique to each individual owning the business. Each TIN is linked to a taxpayer’s Social Security Number, making it possible to track down who owns what share in the company.
For example, if you are buying a restaurant franchise, then you would have to purchase a TIN from either the IRS or the State of California depending on where you live.
