What do you imagine when you think about buying a business? Whether it’s signing contracts in skyscraper boardrooms, or a dragon in a black chair next to a pile of cash, films and TV have given us all a lofty idea of entrepreneurship – and the investment that’s required to get involved. The reality? You can snap up a business for the cost of a decent car, or a luxury holiday, right here at Daltons. It’s not often you have £20,000 in your pocket, and when you do, you’d like to see a return on your investment. While property is always a good investment, £20k isn’t going as far as it used to, and your options are very dependent on where you live in the country. More risk averse? Consider an ISA, and enjoy a steady flow of low-interest earning. But if you’ve got an entrepreneurial spirit, a small business is a fantastic way to see a return on your twenty grand.
What are the options?
Of the 20,000 businesses advertised for sale on DaltonsBusiness, 5,000 are listed as under £20,000, across a range of industries. If you’ve had a craving for a café for some time now, there are dozens that you can snap up for £20,000. In fact, there are hundreds of food services businesses – from coffee shops to ice cream parlours, and several bars, restaurants and fast-food outlets – that you could own for twenty large. Or why not tap into the wellbeing zeitgeist with a health or fitness business? You can buy into more business sectors than you might have previously thought for £20,000 or under – even gyms, health-food shops and beauty salons.
You know what you want – now to finance it
The money to buy the business is step one, but the costs won’t necessarily stop there. Walking into an existing operation means immediate overheads – hopefully sales will cover these ongoing costs, but better to err on the side of caution and make sure you can keep it running. The good news is that there are just as many options for finance as there are businesses to buy! Banks and other lenders will be able to help – and we’ve got a guide to help you navigate the process of financing your business.
Want a brand deal? Consider a deal on a brand with franchising
High income businesses will naturally command a high premium. According to research by the British Franchise association, the mean cost to start a franchise is £100,000 – but this figure is inflated by large and expensive outlets. In reality, more than half of the franchisors interviewed had initial costs below £40,000. Franchising is also more appealing to bank funders, with most bfa-affiliated franchisers able to secure 70% of their total investment through lending. Take a look at the numbers yourself, and don’t rule out franchise businesses for sale!
From tiny acorns…
From online businesses, through hairdressers and garden maintenance businesses, then, there are plenty of opportunities for less than £20,000. And if your budget, including any finance you can get your hands on, is around the £20,000 mark, you’ll be pleased to know you can definitely afford to buy a business today. And remember – just because you’re buying a small business, doesn’t mean it has to stay that way.
