Where would you look for small businesses for sale?

[Jheath]

It's a shame to see so many micro businesses and small businesses close which have so much growth potential, either because the founder has other projects or just because they got a bit bored. Where's the best place to look to acquire businesses like these? They often just seem to get closed down and any value completely lost. I'm intersted in businesses selling physical products specially in the DIY / Hardware or other sectors, if there's some level of ecommerce aspect then even better.

 

[Peter Morris]

There's a plenty of websites that serves that purpose, RightBiz for instance.

 

[pentel]

There are lots of businesses for sale.

Unfortunately most that are up for sale are at inflated prices which the sellers have no chance of achieving other than to dreamers. The seller then loses all interest when the valuation provided by the selling agents fail to materialise.

The price then gets reduced but the agent still wants their cut. Add in the not insignificant legal costs when selling and it can then be more cost effective to close rather than to sell.

 

[Clinton]

They often just seem to get closed down and any value completely lost.

The reason they close is because they are crap businesses and nobody with any sense wants to buy them.

Most of them are jobs, not businesses. The owner works full time in the business, doesn't pay himself a salary, and is left with a small dividend at the end of the year. In many cases, he's working for less than minimum wage.

But I've got a list of marketplaces here if you're interested. Those are the places where businesses get advertised for sale.

I've got a lot of experience in this so trust me when I say - just DON'T! Buy a larger business, yes, not a micro business (under £1m in turnover)

There are several courses out there that claim to teach you how you can buy a larger business without any capital and without taking any risk. The sellers of those courses are, by and large, full of sh*t.

Get some more money together and buy a larger business when you've accummulated the capital. In the meanwhile, get a few good books on business buying. Or check out David C Barnett free videos on Youtube. Spend 100-200 hours on those videos before you even think about buying a business.

 

[The Byre]

I'm intersted in businesses selling physical products specially in the DIY / Hardware or other sectors, if there's some level of ecommerce aspect then even better.

Your best bet is to start one yourself.

Once again, @Clinton and @pentel tell it like it is - these things are either jobs or hobbies or a mixture of the two. There is absolutely nothing wrong with having a job and definitely nothing wrong with having a hobby. But owning a real business costs money because you have to employ someone to keep an eye on that business and make sure that it is performing properly.

The coming two to five years will see plenty of opportunities as we head into a deep recession. My 30 cents worth is to keep your powder dry until the recession gets so deep that assets are being practically given away. In 1920s Berlin you could buy a house that today would cost over €1m for six ounces of gold - about $200 at the time.

 

[Ashbridge]

I know people who have both bought and sold through Daltons.

 

[Mark T Jones]

Why are they selling?

Why are you buying?

In 90% of cases the answer to the first will be either:

They've got excited on the back of a ridiculous valuation from a dodgy business broker

Or

It's a crock of shit

The answer to the second is for you, and is very important

 

[Bob Morgan]

Buy a big one and wait!

 

[KeithGreen]

Try approaching businesses yourself, or employ an intermediary to do this for you

Also see

o www.businessesforsale.com

o www.daltonsbusiness.com

o www.rightbiz.co.uk

o www.business-sale.co.uk (businesses over £300,000 turnover only)

Many other resources are available, somebody has posted a link above I notice. Also eBay has a Business for sale category, so does Gumtree I believe.

 

[WaveJumper]

The reason they close is because they are crap businesses and nobody with any sense wants to buy them.

Most of them are jobs, not businesses. The owner works full time in the business, doesn't pay himself a salary, and is left with a small dividend at the end of the year. In many cases, he's working for less than minimum wage.

But I've got a list of marketplaces here if you're interested. Those are the places where businesses get advertised for sale.

I've got a lot of experience in this so trust me when I say - just DON'T! Buy a larger business, yes, not a micro business (under £1m in turnover)

There are several courses out there that claim to teach you how you can buy a larger business without any capital and without taking any risk. The sellers of those courses are, by and large, full of sh*t.

Get some more money together and buy a larger business when you've accummulated the capital. In the meanwhile, get a few good books on business buying. Or check out David C Barnett free videos on Youtube. Spend 100-200 hours on those videos before you even think about buying a business.

Good link there from @Clinton I have to say ?

 

[Lisa Thomas]

DM for details of an expert who specialises in these sales.

 

[Greg PW Shearman]

I would be investing in a proven model - not a failing model !

If only anyone had thought of buying a low cost franchise model !

 

[Socio South West]

Lots of good points above - as @Clinton regularly says, most of these micro businesses are jobs rather than true businesses.

There's no harm in taking something like this on - but equally it's not a shred of good taking on something turning over £10k pa from your back bedroom: You will soon realise that its gobbling up your free time and your quality of life is diminishing as you try to run it with a Mon-Fri 9-5 job,

Look at something with a GP at least approaching £100k - so turnover maybe £150k plus - to give yourself a chance of getting into it full time and making a go of it.

You mention DIY / Hardware - are you really sure you want to take on the likes of Screwfix and Toolstation? You would be better advised to find a niche business where your product range is less readily available.