Buying a franchise or business, the Business broker perspective

Submitted by Fayaz on Tue, 11/18/2008 - 12:35pm.

From my informal survey..

Only 25% of broker listings sell and they only have 25% of what is for sale. The rest are FSBO.
            
Businesses sell on average for 40% less than asking price, unless there is an accompanying valuation on file.
 
Other facts:
            -90% of buyers do not know what they are looking for, and they end up buying a Franchise or business they never thought of.
      -90% overpay by about 30%
      -90% are buying a job.
      -90% will re-sell in 3-7 years.
      -90% of opened escrows never close
      -90% will never buy a business for lack of knowledge/education/courage/money
 
CONCLUSION:
 
      Most first time Franchise Buyers are a bit clueless. If you need some direction, set up your Criteria and start educating yourself as this is one of the biggest decisions of your life. And if I am right about that, shouldn't your spouse be involved in asking the questions and hearing the answers too?
 
Most business brokers complain that buyers lack "EDUCATION" and try to get free education off the broker. He can tell what kind of buyer you are just in the first 2 minutes of you asking questions. Want to get better results? need to get an education in business/franchise buying? You need a "license" to drive a car so that everyone knows the rules of the road and society on wheels can function smoothly; yet you will buy a business for over $300,000 with ZERO education (or you want it free), and if you get into trouble, you sometimes want to blame others for your own ignorance and shortcomings. Other times you say "there is nothing good out there"; you get a house Appraisal and a Spousal approval before you buy a house, but apparently you do not need a Valuation or Second opinion for a business..............am I right? Ay,Yay,Yay....!!
 
      You should also consider a SEARCH specialist to find deals, coach you, and evaluate them. A targeted approach yields better results than the hit and miss approach used by most buyers. (If you are trying to get from Seattle to Los Angeles, why go via New York and Miami....I am amazed at how many people do this in the Franchise buyer world !)
 
Contact me by e mail or sign up for one of my teleseminars, 800-401-6424, 949-253-4610
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