As an aspiring entrepreneur, you may have reached the point when you are trying to decide between starting your very own business or purchasing one. There are a number of reasons to start fresh, but arguably, there are even more reasons to buy an existing business. From retiring Baby Boomers to greater diversity in business ownership, there are several arguments for why now is the right time to buy a business.
1. Strong Economy
There is no predicting where the market will be in two to three years. In fact, some experts are predicting a recession sometime between 2019 to 2021. However, the market is currently strong and entrepreneurs have every reason to be optimistic. For the next 12 to 18 months, economists predict a strong economy in a seller’s market. This means there are going to be numerous sales and mergers, making it the best time to buy a business.
2. Retiring Baby Boomers
The demographic for business owners is about to endure a major shift. Baby Boomers are preparing for retirement, which means their businesses will be up for sale or a merger in 2019. In fact, the majority of US businesses (53%) are currently owned by Baby Boomers, meaning many businesses will be up for sale within the next two years.
3. Record High Profitability
The financials of small businesses at the end of last year reached record highs. Although this does translate to higher market values, it also means you would be investing in healthier businesses. A healthy business means an investment with a greater chance of success and minimized risk.
Although the majority of business owners in the United States are Caucasian men, 2018 saw an increase in entrepreneurship and business buyers who are women, African Americans and people under the age of 50. In fact, one-third of business buyers in 2018 were non-natural-born citizens. No matter what your demographic might be, now is a great time to pursue your dream of owning a business.
5. SBA Loans
More than ever before, SBA loans are highly accessible. With the intention of helping small businesses, SBA loans have lower down payments and flexible requirements for approval.
Transworld Business Advisors Houston has an arsenal of skilled professional brokers with extensive experience in buying businesses and indisputable knowledge in your specific industry. Because of the many reasons mentioned above, now is the right time to buy a business. Contact the local experts at Transworld Houston today to find your next project.