Mango Business

Archive for July, 2009

Buying an existing small Canadian business for sale can be a great decision towards achieving your financial independence and pursuing a passion you may have.  It is not for everyone though – there are risks involved that you must address.  Buying a small business requires capital, time, hard work and the ability to handle some moderate risk.  Please use care regarding the Canadian business for sale you are interested in – consider if purchasing the business is the right decision for you.  That being said, this article lists some of the more common reasons that people decide to buy a small business.

Customers. When you buy an existing Canadian business for sale there are typically existing customers already in place.  Many times start-up ventures fail for the simple reason that after the initial investment and work to get the business started that customers don’t arrive for quite some time (or not at all).  Having an existing customer base with an existing business is a major reason to buy an established Canadian business for sale.

Company reputation. When you start a company from the ground floor there is no existing reputation.  As a business owner in this scenario, you must work on building up your business’s reputation.  With an existing small business, there is usually an established business relationship existing in the marketplace.  Be careful to only buy a business for sale that has a good reputation!

Trained employees.  An established company will usually have staff in place that know their jobs and are fully trained.  Use caution and diligence when you buy a business to be reasonably sure that the staff will remain in place after the sale.  Mitigate any risks you think might be a factor.

Vendors are in place. Having good vendor relationships are crucial to the success of many small businesses.   When you consider buying an existing business for sale you may find that these critical relationships are already setup and the work to set these up has been done.  Confirm this during the due diligence process.

Operating systems are established. Starting up a new venture requires some trial and error with respect to the operations and usually involves some work in getting the ‘bugs’ out.  When you buy an established Canadian business for sale then there is a strong chance that most or all of the operational ‘bugs’ are already worked out of the system.

Well known existing location. Buying a small business that has been in operation for many years out of the same location has significant benefits.  Example – buying retail clothing score in a well-known Toronto or Hamilton, Ontario location that is recognized as a ‘destination’ spot to buy clothes has significant value to a business buyer. 

Cashflow. Buying a business with existing sales volume means cashflow on day one of owning the business.  Cashflow is the key to any business success so this is certainly a key benefit to buying an established company.

When you buy a Canadian business for sale it is important to recognize the clear benefits that come from acquiring an existing operation.  Please use caution and do a thorough due diligence before you sign on the dotted line.  Working with business brokers is a wise decision and you should always consult with a lawyer and accountant before you buy a small business.

There are plenty of marketing materials today that are aimed into increasing your business connections. Because of the ease of use and the increased range, many of these materials come in the form of electronic messages sent through the internet.  However, there is no denying that while the internet and online marketing materials have helped and revolutionized the way the marketing industry works, it is still a close second to actual full color printing materials.

For reference, let us take a look at business cards. Electronic business cards are very easy to make, easier to distribute and cheaper than actual business cards that are made with full color printing. However, let us also look at the fact that the actual business cards are generally more preferred to their electronic counterparts. Here are the reasons why:

Do not underestimate the importance of touching the actual marketing materials

Digital business cards are grossly impersonal and defeat the purpose of social networking. On the other hand, actual full color printing made business cards can be touched, stored and kept by your audience. they can open their wallet and retrieve them anytime that they want. They can even store it in their pockets – something you cannot do digitally.

Some may argue that digital business cards are safely stored and tucked away in a computer’s hard drive and that it is a far safer place to keep contact information than merely keeping it in your pocket or in your wallet. However, this argument can be dismissed easily since the fact that the information can not be accessed without the use of computers. When you are in a restaurant and you meet with a potential client, will you send him an electronic business card? No, you give him your business card personally.

Remember: No man is an island

This brings me to my second point which is the importance of interaction with people. Part of the success of business cards is that it allows people to interact in a natural way without appearing fake and forced. Also, when you send a business card through electronic means, you are effectively at the mercy of the recipient and you have no control over what he does. He can keep your business card or he can delete it right away.

On the other hand, with printed business cards you can have some sort of a say on the whole situation. When you extend a business card to a person, common courtesy states that he should accept it. And while there is no assurance that he will keep your business card, at least you already know that he accepted the card and that if designed properly, your card has a stronger chance of being kept.

Connecting personally with people is more effective

Also, being there personally give out your cards means that you have established a connection already with your potential client. The fact that many of the electronic business cards can be sent out by electronic bots do not sit well with many people.