Written by Efranchisesale Staff Monday, 20 February 2012 21:38
It’s almost springtime, and that can only mean one thing: plenty of businesses for sale by owner will be available in Colorado. Similar to the real estate market, businesses also seem to go on the block in early spring in anticipation of new buyers entering the market. This may also mean that franchisors will be actively pitching new franchise opportunities to brand new entrepreneurs. If this sounds like the time of year for you to enter the market, it may be worth considering an existing franchise instead of a new one.Not every franchise can be sold in a business directory. Some of the larger ones can only be sold at the corporate level, but smaller franchisors often allow owners to market the business on their own. If you look at the businesses for sale by owner in Colorado, you will find that plenty of them are franchises. Depending on how well the franchise is doing and how many competitors are nearby, it may be worthwhile considering a for-sale-by-owner franchise over a new one.
Lower Start-up Costs
By the time a franchise goes up for sale, many of the start-up costs have already been paid off and the business is more profitable than a first-year franchise. Additionally, the business has already had time to become a familiar name in the neighborhood and it has an existing customer base. Employees have been hired, vendor relationships have been established and hopefully all the kinks have been worked out of the initial business plan.
Possible Downside Risk
Buying one of these businesses for sale by owner in Colorado is much less risky than starting a new franchise from scratch, but there are some downside risks as well. Consider the fact that the present owner may have burned some bridges or made some bad decisions while running the company, or perhaps the business has been poorly run and the bookkeeping needs a complete overhaul. When this happens, it may seem a lot easier to buy a brand new franchise.
Do Your Homework First
Choosing a franchise isn’t always easy, and it often involves a mountain of research before making a decision. Once you have narrowed your search down to a few business types, start searching for similar franchises in a directory of businesses for sale by owner in Colorado. You may be surprised at the difference in price between a new franchise and existing one.
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