Branch Office Opportunities
Main Office (714) 210-3979
600 W. Santa Ana Blvd, Suite 525
Ana, CA 92701
Acquiring a business
|Buying an existing
business or a franchise is an excellent way to get
started in business. However, be sure to ask yourself
the following questions before buying:
- Does the business fall within
the scope of your business plan and area of
- Why is it being sold?
- Is the price reasonable in
view of current market conditions?
- Is the seller offering any
goods or equipment along with the sale? If so, what
are they worth?
- Is the building for sale as
well? If it is rented, under what conditions can the
lease be taken over, transferred, or renewed?
- You will also want to look
into the business's contracts as well as their
suppliers and clientele. Does the seller have good
relations with his suppliers and
Finally, take an interest in the
personnel of the enterprise—in their competence, level
of training, and the quality of their work relations. It
is in your best interest to have competent, well-trained
personnel, and to secure the cooperation of those
responsible for the day-to-day operation of the
Two sides of the
The advantage of buying an
existing business is that it has been tried and tested.
You can forecast short- and long-term profits on the
basis of its financial statements.
aware that you are buying an established enterprise that
has its own business culture, management style, and
relationships with outside partners, etc.
change the way things are done in the business at the
time of sale, you may run into resistance. Don't
hesitate to discuss this with the seller. Explain your
management style, how you plan to run the business and
what changes you plan to make. Many buyers ask the
previous owner to stay with the company until they are
more familiar with running the business.
A franchise is a
business operated under a contract conferring the right
to produce and market an existing product or service in
exchange for payment by the franchisee of a specified
amount. The franchisee benefits from the knowledge,
proven production or management methods, publicity,
advice, and better buying power of the franchisor.
Before you buy a franchise, find out whether the
franchises operating in your area are financially sound.
Is the brand well known? Are there any competitors
nearby? Take a close look at the restrictions and
obligations imposed by the franchisor. You will be
required to charge the same prices as all other
franchises operating under the same name, restrict
yourself to the franchise's products and follow the same
methods of production.
In other words, the
security you gain by offering a known product is
compensated by a reduced margin of manoeuvre and reduced
Consult the our experts for
advice on running a franchise. You can also research a
particular franchise before buying it.
Another way to
enter the business world is to manufacture products that
have been designed by someone else. There are two ways
to do this:
and manufacturers' agents are excellent resources for
putting you in touch with inventors, and trade shows and
journals are good sources of information on new
inventions and products abroad.
- The product designer has only
a patent and prototype of his invention, and he
entrusts you with manufacturing and marketing the
- The product already exists
under a protected trademark in another country, and
you secure the rights of reproduction in your country.
can also furnish ideas on products that can be imitated
and sold in local markets as an alternative to imported
goods. You may come across products that were not
successful, but whose potential is still there. Before
considering these products, find out why they did not
meet with commercial success:
In such cases you
must make sure the products are still potentially
useful. (For example, some ecological or multimedia
products came out at a time when people were not very
interested in the environment, and did not own
- The marketing was poor.
- They appeared on the market
under unfavourable conditions (e.g., they had gone out
of style or were not price-competitive).
- They did not reflect the
concerns or technology of their time.
Recycle, Resell and
To recycle means to give
an existing product a new use:
Recycling requires technical know-how, but
it often allows you to use cheaper raw materials that
can generate a healthy profit margin once reprocessed.
Of course, just as in any business, there must be a
demand for the product which you will still have to
market. You must also ensure your ability to maintain an
adequate supply of raw materials (the recycled product).
- By using those parts of a used
product that are still good;
- By reprocessing the basic
materials of a used product;
- By finding a new use for an
- By substituting cheaper but
equivalent materials, thereby reducing the cost of
Furthermore, you can resell goods at a
discounted price. Here, too, you must be able to count
on having an adequate supply of goods from bankruptcies,
clearance sales, unsold stock, etc.
Home | Business
Loans | Commercial
Mortgage | Residential
Mortgage | Auto
Equal Housing Lender.
Inc. is a corporation Licensed by the
of Real Estate. License # 01357965
Web Design & Hosting
Copyright 2002, Masari, Inc.