Buying a small business - how to find them?

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lazing

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For a long while now I've toyed with the idea of running my own business, but due to a lack of imagination can't come up with an idea I believe in enough. I know that it's just a matter of picking something (ie not wait forever for that 'killer idea'), but I just can't.

So I've decided to buy a business that's up and running, and now I'm trying to figure out how to find one. I've come across various websites that purport to sell businesses ( eg http://www.simple.ie/ ) but can't really see anyone buying a business this way. I've come to the conclusion that the best way is to:
1. Look at businesses gone into liquidation recently (but how do you find these?)
2. Talk to accountants / solicitors who might have clients on their books who are interested in exiting their business.

I have about €300k to invest, and have a willing friend who'd probably go in for the same amount.

All thoughts / help much appeciated.
 
Heres a good site for businesses for sale www.owenscommercial.ie ALSO I THINK WITH THE CAPITAL YOU HAVE AVAILABLE TO YOU ,YOU SHOULD TALK TO SOME OF THE FRANCHISES AVAILABLE. I think you need to be careful not to overpay for an existing business /lease etc. but there are some good oppertunities . I have a friend who has a dominos franchise and hes very happy with the business model and support, profits etc. smoothie/juice bars in prime locations are a good bet too,big name franchises tend to get offered alot of the prime slots in new developments so less chance of failure.Good Luck !
www.franchise.ie www.franchiseoptions.ie you can request info on a number of franchises.
 
lazing said:
For a long while now I've toyed with the idea of running my own business, but due to a lack of imagination can't come up with an idea I believe in enough. I know that it's just a matter of picking something (ie not wait forever for that 'killer idea'), but I just can't.
Click to expand...

You could try [SIZE=-1]www.thebusinessshop.ie/ or maybe invest your money in several small businesses / start-ups etc

However, if you "[/SIZE]can't come up with an idea I believe in enough", I would caution running out and buying someone elses business.

Running a small business requires a lot of hard work, so having a knowledge and passion for the area you will be operating in is essential and buying someone elses business will not fix that problem for you.

Best of luck and let us know how you get on!

Cheers

Fintan
 
setemupjoe said:
Heres a good site for businesses for sale www.owenscommercial.ie
Click to expand...

Just looking at some of the business' on offer here. The newsagent in the northside SC for example has a CTO of €1.68m and are looking for offers in excess of €180,000. Would this be a viable offer to put in on a business that has a turnover 9 times the vaule of the business?
 
You have to base it on the returned profit and not on the turnover. A large turnover does not mean a large profit if the mark up is low or the costs are high.
 
Itchy said:
Just looking at some of the business' on offer here. The newsagent in the northside SC for example has a CTO of €1.68m and are looking for offers in excess of €180,000. Would this be a viable offer to put in on a business that has a turnover 9 times the vaule of the business?
Click to expand...

There is only 2.5 years left on the leasehold. Wouldn't this have a bearing on it too?
 
Thanks for your comments. Will take a look at franchise route, and checkout sites with businesses for sale.
 
I would be careful with the franchise route if I were you. I know a lot of people who have lost money and time and energy that way. There are some good franchises I am sure but there are also a lot of very dodgy ones.
 
Per the BBC series, Dragon's Den, divide the asking price by 2, and then by 2 again (or divide by 4!!). Sellers always overvalue... just a thought !
 
If you have a financial or business background you could look at getting involved in the Business Angels scheme that the County Enterprise Boards and Enterprise Ireland run.
You could also look [broken link removed]
 
^^^ lol! - as least you've still got a sense of humour about it!
 
So based on the valuation calculation by Bob_tg and Dragon's Den you're looking for 1.25 (ie 5 / 4)...
 
You should take a look at [broken link removed] it has many different Irish franchises and international franchise opportunities targeting the Irish market, it also has a franchise advice section and one to one free advice from franchising experts to help you. You should always seek advice before entering any agreement with any company.
 
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