Most of the businesses you see at these fire-sale prices are often cash strapped. Therefore, it can sometimes be easier to start a new franchise than to turn a failing business around – but why is that?
1. Negative Reviews
These struggling companies have dug themselves into a hole online, which is hard to get out of. It would make more sense to start fresh, build your credibility and your rapport with a quality franchise.
2. Online liability
3. Company Culture
Conversely, if you have the budget, you don’t have to buy a fire sale business. You can buy a well-run business – and that would make sense. The staff is in place, they’re long-term, there’s low attrition, the culture is great, their online reviews are good, and the customers are all happy. You buy that business and walk into an existing cash flow, but these businesses aren’t sold for £30,000 or £50,000. They’re successful, so they’re going to be asking for a LOT more money. Of course, you’re going to be paying a premium for these types of resale businesses. Therefore, the equity you would have made starting that business via a quality franchise opportunity would be lost.
So, as you can see, there’s no right or wrong answer. It’s going to depend on your skills, your budget, the type of business and several other factors as well. Unless, of course, you take us up on tip number 2 . . .
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