Hi Julius it also took me a while to see the benefits of buying an existing business. It is definitely the way to go for experienced business people. My advice is that you should investigate at least 20 businesses before committing to a viable offer. Also make sure that your puts you in positive cashflow from day one. If this is not possible then walk away from the deal.
I like the fact that on both sides you showed advantages and disadvantages. There is a manufacturing business I want to start, but there are none to be found in SA that are on sale. Does that mean I should start that business or wait to purchase an existing one?
Passion for a specific type of business is a strong motivator, so it you have a clear and viable business plan then I would follow your passion. Manufacturing in South Africa is tricky a labour is expensive and over regulated. Having said that I would try and grow the manufacturing business organically with least amount of debt in this current environment with high interests rates. Good luck, fortune favours the brave.
Hi Christophur, I agree I would also recommend purchasing a business using a Pty. Please watch this video. ruclips.net/video/_CAYSrmUSjk/видео.htmlsi=ZtmnDJcX4O-S7PCd for more information on the benefits of trading in a Pty. Maybe you should also look at this one on holding companies. ruclips.net/video/PAoQOwyenuE/видео.htmlsi=fhvauDd6vQ1oZXWm It many not be necessary to have a holding company structure for now. Good luck with your decisions.
This is great information. Thanks. I never thought that buying an existing business is an option. The greatest hurdle I guess would be to finance it, but as you say, the risks are lower, to potentially easier to finance. My first thoughts would turn to an investor as they are generally more less risk averse than banks, but would then own equity. Banks seems like a reasonable alternative if the business fits their risk profile. I have a startup building software, but in the early stages. It's not too late to consider buying an existing business. Would you go to the main high street banks for financing and where would one start to look for existing business that are for sale?
Hi there, finding finance for a good deal is the easy part. The effort "luck" is in finding the right deal. You could try business brokers but the price may be too high as they earn a commission on the sale. You should look at many businesses but the key is to be cashflow positive from day one.
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This is Gold information. I’m an entrepreneur but I’ve never looked at it this way
Hi Julius it also took me a while to see the benefits of buying an existing business. It is definitely the way to go for experienced business people. My advice is that you should investigate at least 20 businesses before committing to a viable offer. Also make sure that your puts you in positive cashflow from day one. If this is not possible then walk away from the deal.
This was incredibly helpful in my decision to buy an existing business, thank you so much!
That's wonderful, thank you for the compliment and good luck with your new venture.
Informative and clear video with some great advice. Thank you for sharing :)
Glad it was helpful!
Thank you so much for this! I’m thinking of becoming an entrepreneur, so I was glad I came across your video
You're so welcome!
VERY GOOD INFO!!!! great share- thanks, i look forward to your next video.
Awesome, thank you!
I like the fact that on both sides you showed advantages and disadvantages. There is a manufacturing business I want to start, but there are none to be found in SA that are on sale. Does that mean I should start that business or wait to purchase an existing one?
Passion for a specific type of business is a strong motivator, so it you have a clear and viable business plan then I would follow your passion. Manufacturing in South Africa is tricky a labour is expensive and over regulated. Having said that I would try and grow the manufacturing business organically with least amount of debt in this current environment with high interests rates. Good luck, fortune favours the brave.
Love it . Very useful and abstract
Glad you like it!
Thank sir , I've been saying and wanting to do this, buy should start a holdings company to buy it
Hi Christophur, I agree I would also recommend purchasing a business using a Pty. Please watch this video. ruclips.net/video/_CAYSrmUSjk/видео.htmlsi=ZtmnDJcX4O-S7PCd for more information on the benefits of trading in a Pty. Maybe you should also look at this one on holding companies. ruclips.net/video/PAoQOwyenuE/видео.htmlsi=fhvauDd6vQ1oZXWm It many not be necessary to have a holding company structure for now. Good luck with your decisions.
@@swiftregto reduce risk , is start a pty a good start to separate myself from entity and debt .
Thank you, it very informative. looking to get a business coach.
ANY RECOMMENDATIONS??
Hi there, I am sorry I can't assist, but I am sure it will be money well spent. Good luck!
Thank you for the information
My pleasure
This is great information. Thanks. I never thought that buying an existing business is an option. The greatest hurdle I guess would be to finance it, but as you say, the risks are lower, to potentially easier to finance. My first thoughts would turn to an investor as they are generally more less risk averse than banks, but would then own equity. Banks seems like a reasonable alternative if the business fits their risk profile. I have a startup building software, but in the early stages. It's not too late to consider buying an existing business. Would you go to the main high street banks for financing and where would one start to look for existing business that are for sale?
Hi there, finding finance for a good deal is the easy part. The effort "luck" is in finding the right deal. You could try business brokers but the price may be too high as they earn a commission on the sale. You should look at many businesses but the key is to be cashflow positive from day one.
Is Owner Financed used much as a financing option in South Africa?
I would suggest that owner financed is used in the majority of cases.