The market of ready-made business is not completely formed yet. It is a conclusion of those few meditative companies trying to bring sellers and buyers into contact. There are a lot of the reasons for such state of the market, but one of the main ones is a lack of awareness among the businessmen about the purchase and sale of business services.
There are companies in Ukraine working on separate directions: ready-made business evaluation, financial audits, legal support.
From the very gaining independence of Ukraine, purchase and sale of business became rather urgent affair. It was connected with the beginning of privatization, as well as with the appearing of entrepreneurship and small business.
Today Ukrainian ready-made business market volume can be valuated on the basis of indirect data. For example, the Western statistics says that one in ten owners somehow begins to think of his business sale. There is an opinion that the current Ukrainian market is able to supply for sale up to 300 companies a year.
Today Ukraine has a big demand for small companies with the price not exceeding $300 thousand.
As experts say, the demand on the new Ukrainian market for a ready-made business exceeds supply more than twice, because companies have financial resources, but don’t have information, so people don’t know where to invest money.
It’s worth mentioning, that most popular among business buyers are service stations, laundry houses, model houses, restaurants, shops, exchange shops, travel agencies, beauty saloons etc. The most active in sale are restaurants, cafes, small plants. In summer season there are many requests on rest houses and pensionates sale from southern regions, i.e. from Kherson, Nikolaev, Odessa, the Crimea.
The most attractive area for business purchase is Kiev and its region. The next is the Eastern region, i.e. Donetsk, Lugansk, Kharkov; and the South (Odessa, the Crimea). Experts connect this with a general economical and political situation in the country.
Specialists agree, that already in a couple of years the Ukrainian market of ready-made business will actively develop. It will be connected with a breakthrough the informational blockade, when owners will be aware of a possibility of their business sale, as well as with stabilizational process of Ukrainian economy.
Why Business Is Sold
Recently advertisements like “WTB ready-made profitable business” and “WTS ready-made business” became wide spread in the internet as well as in outdoor advertising (billboards etc). Having read such advertisements one can make a conclusion that the market of ready-made business is actively developing in spite of (or even thanks to) the crisis of 2008-2010.
Indeed, somebody sells his business to start something new and somebody else purchases it because doesn’t want to start from scratch. On closer view to remaining objects, one can really find something interesting and profitable for a new owner among them. Of course a price for these enterprises is not quite adequate as for realities of today, but this concerns more civility of the market of ready-made business in Ukraine.
Simultaneous conducting of two separate businesses is quite a difficult job. That’s why it is strategically correct to get rid of a small business with a stable income by its selling. Another important reason making a businessman sell his business is simply an ordinary weariness. It mostly concerns small and medium-sized enterprises, where an owner plays an important role in managing and developing business. If interest to development disappears, the business starts to retreat firmly to young competitors, i.e. it should be passed to a new enthusiast.
Advantages of Business Purchase
Purchase of ready-made profitable business will be of great benefit for a young businessman. Of course there is always a possibility to start business from nothing, however such a way does not always give results planned at the initial stage. It depends on many factors: not knowing the basis and rules of existing market, its state, purely bad luck and little experience of entrepreneurial activity. That’s why purchase of a profitable business that functioned successfully for pretty a long time and produced a stable income is the most right affair. In this situation a new owner will not need to work hard at the initial stages. This is the advantage of ready-made business: a buyer observes it for some time, works out perspectives of its further development, but at the same time he will get a stable income with minimal risks. When he gets his hand in new surroundings, he will be also able to undertake his own independent steps aimed for most efficient development of a company.
Holding negotiations on ready-made business sale, it’s easy to determine, whether an owner has already got sufficient earnings to start a business of larger scale. So it will be reasonable to assume, that having bought such business his new owner will also earn enough money to gain economical and financial independence. So one of the pluses of private business is that it allows developing all the talents to the full extent. A buyer of ready-made business has an opportunity of getting profit that depends on two factors: the work held by a former owner and personal qualities of a new one.
Where to Buy Ready-Made Business
If you are going to buy ready-made business, you should first do market monitoring. Then you can buy business. It’s even better to ask for help of specialized companies (broker). A broker can find hidden pitfalls, by means of what to reduce a price essentially or even stop negotiations at all. If everything is OK, a buyer really purchases his business for its real price and spares sometimes up to 50-60 % from a stated at the beginning of deal-making process price. Otherwise, even if a deal failed, an investor saves his money from the wrong investing.
Be careful if a business broker agrees to work with you without prepayment, othervice, it may cause big problems in future. The thing is that such broker for sure will be interested in the purchasing of the actual enterprise. That’s why he may not tell you about the discovered disadvantages. So it is preferable to sign a contract with a business broker on terms of separate payment for the enterprise checking with bonus payment in case of successful completion of a deal. As a rule such a bonus depends on an amount of reduced price. In such a way you can kill two birds with one stone: a business broker tries to find as many disadvantages of a given business as possible, at the same time he reduces a price for it. In this case he will be objective in his opinion on the expedience of a purchase, because he will get guaranteed payment irrespectively of the result of the deal.