Transworld Blog

From business brokerage to mergers and acquisitions; we are the business sale specialists.

All Posts

Buying a Business with Unlimited Growth Potential

When buying a business, some entrepreneurs are only looking at it as a source for future ongoing income, or as a way to replace a regular salary. For them, the business' potential for growth is less important than its ability to produce steady revenue.

The flipside of that coin is an entrepreneur who sees buying a business as a long-term investment. Of course, steady and positive revenue is important to them but equally important is the potential that it has for extraordinary growth.

What Kinds of Businesses Have Limited Growth Potential?

Any company where the owner is the business will have more difficulty growing. As an example, let's look at a hairdresser. There's a finite number of customers that a hairdresser can serve over the course of any given month, which means that they can reach a saturation point where scheduling appointments for new customers will become

Of course, expansion is possible by adding more staff, but it's important to remember that in businesses like these, customer loyalty is usually more closely linked with the individual than with the company. Additionally, a hairdressing salon is further limited by the number of chairs it has.

A business can also be limited in its growth potential if doing so requires a significant monetary investment. For example, if an existing restaurant wants to grow by adding a second location, there will be some important costs associated with buying or leasing real estate and purchasing equipment, fixtures, and accessories for that location. Businesses that aren't tied to a brick and mortar facility are more likely to be scalable and therefore can grow more easily.

Strategies for Growth to Keep In Mind When Buying a Business

Business growth means expanding the customer base. Many strategies can help you get more customers and grow your business. Here are just a few:

  • Invest more in your marketing: an excellent way to increase awareness of your brand among the public is to spend more time and money on your marketing. You may want to consider a comprehensive marketing plan that includes an important online element.
  • Increase your capacity: you may eventually be in the enviable position of having to turn potential customers away because your company doesn't have the capacity to serve them. Increasing your capacity may require purchasing more equipment, adding more employees, and expanding your facilities or relocating to a larger space.
  • Expand your business footprint: this is achieved by making your products or services available to customers that had been previously beyond your reach. Examples of this can include a store that opens a new location in a different area or a plumbing company that expands its service area to include a neighborhood or town that was previously excluded.
Now, with a clear understanding of the kinds of businesses that have great growth potential and some of the strategies that can be used to encourage that growth, you can start looking for the perfect business for sale in Minnesota in our current listings.

Related Posts

PPP Loan Hurting Your Business Sale?

I Want To Sell But Have A PPP Loan  If your business has a PPP loan and you are selling all or part of the business, you may need approval from the SBA or the bank that handled your loan. You may also need to put the amount of any unforgiven portion into escrow at close. 

Is Buying A Business A Good Idea?

Yes!  Buying a business is a good idea.  Why?

Ten Steps To Selling Your Business

Our Sellers except us to achieve the highest and best offer for their business while taking the least amount of their time away from it as possible. That is because the absolute best use of their time is to continue to run and grow the company.  If revenue or profits begin to decline, buyers will walk away or decrease their offer. Transworld's philosophy can be summed up in a ten step, how-to strategy that culminates with the sale of a company. This proven method has been used to sell hundreds of businesses.  Here are the steps. Step1 Comprehensive Business Analysis and Feedback As your business broker, the first thing in our how-to strategy is to analyze your operation, finances, market potential and industry trends. We take that information and advise you on steps to prepare your business for sale, and  generate a business profile that represents your company in the most attractive way possible. Step2 Sale Structure We identify the best possible price range to sell your company. This is based on solid facts, the condition of the market, projected growth, sales potential and the sale of similar businesses within your industry. Transworld’s experts apply sophisticated, time-proven valuation techniques to ensure that your price is appropriate for the current market condition. The price must not be too high or too low. Yet, it must represent an attractive investment potential for the buyer. Step3 Confidentially Network The Business For Sale During the selling process, we utilize the latest technology to present your company to other business brokers and strategic buyers all over the world. This greatly multiplies the effort in your favor. With Transworld Business Advisors, you have literally thousands of industry professionals confidentially representing your company to buyers.   Step4 Confidentially Advertise To Buyers Our aggressive marketing program ensures your confidentiality and provides maximum exposure for your company. Your listing is placed in various industry databases, Internet sites, and publications which are constantly updated. We spend more money in advertising and marketing for buyers than anyone else in our industry. Step5 Control The Information Flow We organize all necessary documentation and release information only as needed. We use limited information when advertising to maintain confidentiality. Buyers are pre-qualified and required to execute a confidentiality agreement before receiving any sensitive business information. Step6 Create Competition For Your Company We attract thousands of buyers, creating competition for your business. Buyers are qualified for financial ability to meet the offer, and we engage you with only the most qualified buyers. Once you meet the best of the buyers, we urge them to prepare and present all offers. We can continue to engage potential buyers on your behalf as negotiation on an offer is in process and have another interested party ready to go should a buyer change their mind. Step7 We Negotiate For You To Achieve The Best Price Appropriate negotiation is crucial to achieving your best price and terms. We have the expertise to establish sound and resourceful negotiating techniques on your behalf. Transworld has trained all of its agents in the art of negotiating through curriculum that we have created specifically for our industry. Never negotiate without planning, expertise, or from a position of weakness. Step8 We Provide Exceptional Support To You Through The Due Diligence Process We take pride in our exceptional service. Only half of the job is finding the right buyer who will pay your price and meet your terms. The other half is getting that buyer to the closing table. We quarterback the deal, work with the accountants, lawyers, banks, landlords, and other third parties that could jeopardize the success of the transaction. We realize that you depend on us to guide you through the sale of your business. We make the transition simple and easy for you. We know when an opportunity for you may arise and are always there to take advantage of it. We also know when someone is trying to kill your deal or is being unreasonable and how to handle those situations. Step9 We Are There From Beginning To The Closing We help manage all administrative procedures, licenses, inventory counts and lease assignments that may be required. Transworld works closely with your advisors to ensure a smooth transition. Using the latest technology, we strive to be ready to work on your behalf to get the deal done! Step10 We Are There For The Transitional Phase And Beyond! Because we are in the business community, you may want to consult us from time to time after the sale. We will provide you with the assistance after closing. Transworld will always remain in your corner! Schedule Consultation Now

Your Goals Are Just the Beginning

Talk to one of our Advisors today about next steps.

Free Consultation

E-mail address

Contact us

+(888) 290-5232

Confidential Consultation

Talk to an Advisor