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Editor's Note: This is the 3rd in a series of articles on buying a business: the financing, the negotiations, the process, and the how-to's.
Where Will You Find It?
by Doug Perry
Commercial Realtor ®
You've heard the saying, "Location, location, location." In some types of businesses the difference of being just one street off a main avenue could spell financial ruin. To other businesses it doesn't matter if you're in another state. Depending on what you want, the most important feature is cost. Let's face it, if you can't afford it, it doesn't matter where the location is -- you couldn't afford to buy it. In this section I will outline the "where" factor.
- What are you looking for? Examples can be broken down into several categories:
The business could be run from an inexpensive warehouse, shared space with another type of business, or even from your own home. Other types of service businesses, like a car wash, need to be on a busy street garnering all the free advertising and easy access as possible. Other service businesses like fast food, dry cleaners, retail, etc. normally set up shop in shopping centers to maximize their exposure to foot and vehicle traffic.
- Trade types of businesses.
Body shops, heat & air companies, and auto repair shops all have to be concerned about zoning and permits to operate due to contamination, noice, safety and polution. Depending on what you want, all of these businesses operate in secluded industrial parks as well as street frontage in congested traffic areas. It all depends on the zoning of the parcel.
- Training.
Dental, medical, accounting, insurance companies, architects, etc. usually want to be in the same business types of buildings. Over the years though, many have branched out into retail shopping centers or free standing buildings of their own.
The way you find these buildings or locations is part of our specialty. When interviewing you we are able to find out what area of a community you want to be in, what type of buildings you like, how much you're able to spend in rent or purchase price. Once we've completed your wants and needs list, we research the market area of your choice contacting landlords and property managers to find out what is available. It sounds hard, but if you know what you're looking for it can usually be found.
The Final Word: Location and cost are key.
NEXT TIME: The Art of Negotiating
About the Author:Doug Perry has experience as an independent business owner himself. He combines over 25 years in the business field with experience in insurance, construction and remodeling, and mediation - bringing people together for mutual benefit. He is a member of the California Association of Realtors and the Sacramento Association of Realtors.
Doug & Marla Perry operate www.BuyBusiness4Sale.com to help bring buyers and sellers together.
(This article may be reprinted only with the author's written permission and must include the article in its entirety and the "About the Author" section.)
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