|
|
(Your shopping cart is empty)
Buying an existing limousine company instead.
Matt Jones of Capitol Business Solutions discusses the benefits of buying an existing service.
One alternative to starting your own limousine business is buying an existing limo business. Whether the business is a one man operation with existing clientele or a larger business with multiple limousines, they are out there and available for sale.
The first question you might ask is why would I buy an existing business when I could start one from scratch and save myself a lot of money. The quick and easy answer is that you are buying success. Nine out of ten businesses fail within the first 5 years and you can be certain that the majority of those fail within the first 2-3 years. Every true business is a system of systems and when you buy an existing business you are buying their systems. More specifically, you are buying their systems that have historically shown to be effective and that have cost them time and money to develop through trial and error.
Businesses are valuated by their goodwill or past performance. In fact, the typical way to evaluate a business is not based on its assets, but rather on what the business owner has the ability to withdraw from the business annually. For example, you may be able to buy a limousine that is very nice and rides comfortably, but if you do not have a marketing system in place that drives customers to hire it, then all you have is a nice limousine without a business.
One other consideration that every business owner should examiner before they enter a business venture is to identify their exit strategy. What do you do when the business has met the clearly defined goals that were established from the beginning? Do you list it for sale with a qualified business broker, take on a second job trying to sell it yourself, or shut the business down and try to sell your depreciated assets? The third option entails losing the capitalization of your sweat equity of all the systems that you have built for the future success of a new more ambitious owner who is ready to take the business to the next level.
Starting you own business from scratch has the benefit of pride in that you have built it yourself. This can be exciting. The same type of pride can be felt by improving something that is already there, such as when you put an addition on your home. Whatever your decision regarding your limousine business may be, make sure you follow proven systems that will ultimately get you to the level of success for which you aspire.
-Matt Jones
Certified Business Broker
Capital Business Solutions
305-772-7390
Contact Matt for a free evaluation on the value of the Limousine business you own or are considering buying.
|
|
|
