Buying an existing business means the idea is already proven to work, the business has customers, it is cash flowing (if you’re sensible, and buy a cash flowing business), it will already have employees, it will have all the equipment it needs to operate, reliable suppliers and a good reputation.
Seller financing only works with profitable businesses, and benefits business sellers who don’t want to wait for too long to sell their business, or if they are motivated to sell quickly. There are other advantages, and include tax savings, higher interest payments and protection of their legacy.
Artificial intelligence needs to be a consideration when you buy a business, both positively and negatively. Positively, you could introduce AI after buying the business to make it more efficient and profitable, but negatively, avoid a business that could be destroyed due to AI developments.
The reason why 90% of business buyers fail is because they are first timers, they have never gone through the process before, and they have zero experience in the business buying process.
You can buy a business with no savings and a bad credit score, if you fund the deposit using the cash in the business or by raising asset finance against its assets, and pay the balance of the purchase price from the business’s future cash flows.
A cash flow projection for a bank loan is best reported with a forecast period of 12-months or more, but a 36-month cash flow projection with profit and loss, and balance sheets included is recommended. The cash flow projection must demonstrate the business will be profitable and cash-flow positive.