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Buyer's Timing: Key To Success In Buying A Business



Most entrepreneurs understand, in theory, the importance of a well-timed business move to achieve success.

An example of how that idea can be put into practice in late summer of 2008, is to pursue a strategy that involves capitalizing on the expected boom in consumer spending during the upcoming holiday season.

That means buyers who want to enjoy a steady flow of income as soon as they take over their new enterprise, are well advised to focus on a prospective purchase now--or in the next few weeks--so that completing the transaction and gaining the critically-important training will adequately prepare them to make the most of the end-of-year business rush.

"It's not rocket science, but the new owner will need some time to get up-to-speed," explains Ed Spandau, whose AIM Mail Center franchise is one of the California businesses now offered for sale complete with the opportunity for a busy and profitable surge in sales at the end of the year. "Customers are used to getting very professional service and in order to continue with our success, the next operator should be prepared to keep things running with the same level of competence."

A check with California business brokers verifies that a buyer who has honed in on a business to purchase must allow at least another four weeks to negotiate a deal, handle due diligence and complete escrow. And that's a best-case scenario for someone hoping to be in place, ready to conduct business during the six weeks from mid-November till the end of the year.  It leaves three or four weeks for training, so the buyer is able to operate the business efficiently and reap the profit potential represented by the upswing in customer traffic common during the year's busiest buying season.

Although much of the business in Spandau's company involves work with commercial accounts that use the service for producing and mailing marketing materials and handling the details of customer-relations campaigns, he says that the "holiday season" still can account for 25% of the business conducted all year. And he notes a new buyer will receive two weeks of "very comprehensive" training from the franchisor, in addition to some training support that he will offer to the new franchisee, drawing on the experience during his 13 years as owner of the business.

With the AIM Mail Center's range of offerings including mailbox rental, notary public services and packing/mailing jobs, "there's a lot to learn,' he notes. "And the time to learn it is before the onslaught of customers hits."

Located in a busy San Ramon shopping center, anchored by a major drug chain and other name retailers, the business attracts a variety of customers with what Spandau considers to be a "wide range of needs".

"If a customer wants to send a boa constrictor to Afghanistan, the person behind the counter wants to be able to handle the request and show that he knows what he's doing," says Spandau.

Not all business buyer candidates will need to learn how to ship dangerous snakes to a war zone, but if you want the earnings that can result when the cash register rings during the holiday season, the rule of good timing suggests that you get started now.

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Other Related Blog Posts & Links:

Retail Related Businesses For Sale

Postal / Shipping Centers For Sale

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Posted on August 15, 2008  |   Email This Blog Post   |   Print This Blog Post

 Categories: Buying A Business
 

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About This Blog
Peter Siegel, MBA is a nationally known consultant and author - with over 25 years experience on the topic of selling, buying, and niche financing (the purchase of), small to mid-sized businesses. His clients include: business buyers, business owners/sellers, small business advisors, and business brokers.
This Blog contains observations, tips, news, events, and case studies relating to selling or buying a small business.
This Blog is ideal for business buyers, business owners, advisors, business brokers & agents.



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