Entrepreneurs often find themselves in a constant flow of business opportunities. Some buy a business for sale—build to a profitable level—then sell the place for an even larger return on investment. Many business owners also find a great opportunity owning multiple franchises. This way, they can expand profits while also safeguarding a contingency plan. Others build their organization from the ground up. Launching a solo business venture can be the most difficult approach to business ownership. However, like all business, success is determined by the diligence and proficiency of the business owner.
Three Approaches to Begin Owning a Business for Sale
The most direct way to becoming a business owner is buying a turnkey. This is a business that is already up and running. The idea is that you only need to ‘turn the key’ to start operating. To find turnkeys investors browse through enterprise catalogs that report when a business is for sale.
Buying a store for sale expedites the whole process. Instead of finding a storefront, purchasing equipment, and completing the dozens of other tasks that need to be finalized before opening—you simply buy a business and start running it. This speeds up the whole process. The only downside to buying a business for sale with this approach is your initial investment can be high. Instead of startup costs, you will negotiate a price to buy the business outright. Yet since you are foregoing all the ‘dirty work’ a business for sale can listed at a premium price.
Many franchises do offer turnkeys as a business for sale. Typically, these are corporate run stores that can be purchased for a lump sum. This is similar to the more common route of getting ready to own a business—franchising. A franchise is when a business concept has been proven in the marketplace. The framework of this business is perfected and then sold to franchisees in the form of a franchise fee.
The new business owner is trained and supported throughout the process of opening. A reputable franchise will help facilitate every step of the way to your grand opening and often provides on-going support. Helping find facilities with adequate square feet and local marketing are examples of franchise support. You also get the advantage of having a well-established brand. A brand is part of the scaffolding of a business that a franchisor provides. For example, instead of opening a convenience store, you could open a 7/11, in which customers may already have pre-existing brand loyalty.
This route to ownership is the most challenging pathway. Owners will need to build the entire foundation of their business. You will need to identify a market gap and design your business around this disparity. You don’t necessarily need to invent a product or service. For instance, maybe your town has only busy bars in the area. Researching local consumer-demand and demographics shows that customers would be apt to patronize a sports bar that gets less traffic with higher quality food-and-drink options.
You will need to develop every aspect of the business scaffolding. Projects like writing training manuals, establishing vendors for inventory, and finding the right software to handle your operations are all handled on one’s own. This takes time and effort. If you are not a business savvy person this might not be the best venture. The positive of going solo is that you only answer to yourself. Franchises can have regulations that help steer franchisees toward success, but some feel limited by these rules.
What Businesses are the most Popular?
Of course, the market is constantly changing as businesses are bought and sold. There are dozens of key metrics that influence the logistics of buying a business. But we did some research to provide a snapshot of what kind of businesses are for sale in the United States right now. Of course, gross profits and asking prices are all circumstantial. This list offers an informational sampling. For each style of business, we will outline a few general pros and cons typical of the industry.
One of the most lucrative businesses to own is a restaurant. Although initial startup costs are high, so are profits. Owning a restaurant in a culinary mecca like in downtown Miami or Chicago has the potential to be an amazing investment. Major cities are hots spots for purchasing a business for sale in the restaurant industry. Running a restaurant is more than dropping off straws and collecting your money. This industry takes expertise but has enriching payoffs. Owning a cafe & sandwich shop in South Beach has appeal beyond making profits. You can own a hip business that has an impact in the community.
- High Cash Flow
- Equipment Usually Included
- Strong Ratios (Wages, Purchases, Cap Rate)
- High Overhead
- No Transference of Liquor License
- Dissenting Employees
Turnkeys in the service franchise industry are equally profitable. This style of business is arguably an easier business to begin operating than a restaurant. The reason a service franchise is more straightforward is that you will have corporate support. Training and marketing-packages help you gain expertise and traction with a customer base. Also, there are usually fewer employees to manage. Instead of having a 30-person staff you might have two technicians and a salesperson at the desk. This means lower overhead and less tedium when it comes to scheduling and payroll.
- Franchisor Support
- High Cash Flow
- Fixed Operational Systems
- Requires Training
- Subject to Franchise Regulations
Retail & Boutique
Whether owning a fashion-forward boutique with an upscale inventory, or a business servicing the crate diggers of music through opening a vinyl store, this sector has huge opportunities. As E-commerce becomes more popular brick-and-mortar storefronts are adapting. Retail stores can offer niche or upscale products that customers can only get in-person. The convenience factor also prevails. Popular retail stores sell items ranging from phones, wine, or clothing & apparel. Many retail franchises offer a business for sale that is owned by the company’s corporate headquarters.
- Strong Margins
- Diverse Options
- E-Commerce Competition
- High Employee Overhead
- Requires Larger Square Feet Range
What Makes DrPhoneFix a Great Business to Buy?
DrPhoneFix is a franchise that began in 2008—the advent of the smartphone becoming a major product in the United States. With 77% of the U.S. population reporting to own a smartphone (according to Pew Research Center), opening a phone repair store was a smart move then. Now, the franchise has over 50 locations with 20 of them inside Walmart stores. This partnership is a huge advantage over other phone repair stores. The DrPhoneFix brand is trusted name in cell phone repair.
DrPhoneFix locations specialize in phone repair but customers can get any device repaired, like tablets or laptops. Customers also benefit from life-time guarantees on service repairs. The company has repaired over 400,000 devices building relationships with satisfied customers. Replacing cracked screens, helping customers who are stuck on a forgot password security menu, and fixing water-damage are just a few of the services offered by the company. Owners of a DrPhoneFix also have the opportunity to provide retail products like phone chargers or cases. Locations offer major phone brand parts like Apple and Samsung.
The company’s franchise owners benefit from in-depth corporate training. This training shows owners the ins-and-outs of running a successful business. All the various facets of owning a DrPhoneFix like management, repair, and POS training are all part of the training programs. On top of this, an in-house marketing team ensures that you get customers to the door. There are territories available all over the U.S. from Palm Beach County, Florida to Orange County, California.
If you’re looking for a lucrative business for sale and can see yourself joining the DrPhonefix family, click here for more information!