You want to buy a business but are not sure which business to buy. Ever wonder what businesses other people are looking for? The most popular type of businesses that people ask about buying are those which they think are recession proof. The most popular industry which I am asked about is the food industry. Why? In good and bad times, you always eat. The last few years have been very tough on the economy, what places have done well – low end restaurants such as McDonald’s, fast food restaurants and a growing section in the grocery stores is prepared food section. It is far cheaper to eat at home than to go to expensive restaurants all the time.
There is a wide range of business opportunities in the food business. There are food franchises, there are food wholesalers, food manufacturers, bakeries etc. You can then break that down into specialty foods with a specific niche market within the food business such as ingredients for food baked goods.
Once someone decides on an industry sector, then they have to decide if they can afford to buy that of business. Manufacturers sell for a higher price than a retail store/bakery. As a result, if the budget is limited, people will have to downsize their expectations and look at only what they can afford. Some investors look to the franchise sector because they offer many different types of businesses for all different budgets. Some people pick a specific type of franchise because they believe that it makes money. They may not have any of the qualifications that the franchisor is looking for but they want to buy a specific type of business. When buying a private business, money talks and money can buy many different types of businesses. Some business owners want to ensure that their business will continue and may refuse to sell to a potential investor if they believe that investor will close down the company or make considerable changes which are not in the mind set of the old owner.
Franchisors in particular are very meticulous about the type of person who they will sell a franchisor to. They have had many different types of investors over the years and they can see what types of investors do well and which ones or investors do not succeed. Franchisors want the business to succeed so they try to pick the investors most likely to succeed.
However, many people who have money believe that they should be able to buy any business they want. unfortunately, reality does not work that way for everyone.