As we approach February, Kings Business Transfer is delighted to announce that we have experienced record enquiry levels at the start of this year- in fact, our enquiry levels for January are up 75% on last year and are continuing to increase week on week.
For many, the early months of the year are often a time for change and true to that, the early months of the year is one of our busiest times for receiving new enquiries from people looking to buy a business. Many people are planning for the year ahead at this time and implementing their strategies for 2013.
One of the most important considerations when it comes to buying a business is to know your industry.
For example, the retail sector: Yes, big brands with big debts are struggling, but small, independent stores with a good product and a good service proposition are doing well.
UK convenience stores generated total sales of £33.9 billion in the 12 months to April 2012, a 4.6% increase on the previous year. Convenience now represents 20.8% of the total UK food and beverage retail market, according to food and grocery analysts IDG. IDG expect the convenience sector to be worth £41.3bn in annual sales by 2015, which represents a 33.7% increase over a five year period.
Another well performing sector is the Coffee Shop industry. ‘Coffee shop culture’ has become somewhat of a phenomenon of late. Coffee Shops are continuing to stimulate the high street and last year they served up £2bn of coffee – double the sales recorded in 2005.
The pub and licensed sector is one which experiences a certain degree of negativity in the media, with pub closures being widely reported. However, food-led pubs are performing well and we regularly deal with a number of acquisitive operators who are looking to add good quality establishments to their portfolio.
As for Hotels, Guest Houses and B&Bs; 2012 was another year of austerity, which points towards another year of ‘stationcationing’. A forecast from STR Global also predicts that there will actually be an increase in supply and demand in 2013, according to bighospitality.co.uk. And Russell Kett, chairman of hotel consultancy business HVS London says he anticipates more hotel transactions as buyer interest remains strong and some funding becomes available.
The next step is raising the finance. Familiarise yourself with financial management, tax basics and obligations, and find and compare different loan options for your business. Funding is available- it was reported in December 2012 that lending to businesses has increased, due to the ‘Funding for Lending’ scheme that was launched in August. The aim of the scheme is to increase bank lending by roughly £60m, which if successful is good news for business buyers. Finances in general also lend more readily to an existing business with a trading record. At Kings Business Transfer, we can offer introductions to professional funders who can discuss tailored financial products which meet our clients’ individual needs.
There are a number of advantages to buying an existing business, such as an already established customer base, contracts, suppliers, staff, equipment and stock. You will also acquire the goodwill that is associated with the name and location of the business, and often the previous owner will share their knowledge with you and help you settle into the running of the business.
At Kings Business Transfer, we have a wide portfolio of businesses for sale on our website at www.kingsbt.co.uk. For more information about our businesses for sale or business buying in general, call us today on 0844 3877 300.