If you are a legal citizen or legal non-citizen in the US, you may be thinking to buy or open a biz in the country. Essentially, the chosen goal can be achieved in two ways:
- buy a ready-made company
- start the company from scratch
Main advantages of United States businesses for sale
- One of the strongest economies in the world.
- Skilled and verified workspace.
- Supporting small and large businesses.
- Benefits tax.
History could tell you that the US has one of the most stable and strongest economies. Even in Coronavirus(COVID-19) time, when a large part of the country’s business should be closed, the US economy was looking far away and setting up for growth.
We can note the following features and advantages:
- Low price. It is especially profitable to buy a business when a crisis has arrived.
- Together with a made company, you get an operational, tested business model.
- It is easier to attract investment in an already made business, than making it only by yourself.
- Thanks to the purchased business your company will be more recognizable.
What risks can befall me?
If your ultimate goal is to earn a high income, one of the best ways to make it happen is buying a business in the USA. But, as in any kind of activity, the acquisition of a ready-made company involves certain risks. They appear at the following times:
- Choose an activity in which you are an amateur, or non-professional. Buy a already running company in an unfamiliar area is a rash decision, as you will have to spend too much time studying the direction being developed. The main thing is to rely on your own knowledge and strategies which already exist.
- The second most important risk is a huge number of scammers in the market for selling a business in the US. You can come across various options for fraudulent schemes: fictitious business, fake documents. To avoid a mistake, the object of sale and purchase must necessarily pass a legal check.
- The third risk is a long payback. When purchasing a company with seemingly well-established processes, you need to be prepared for the transition period. Definitely, it will take some time to adapt workspace, partners and suppliers to the new owner.The actual state of affairs of the company may be much worse than presented in the documents.
- Staff. Buying a US ready business, you acquire not only documents, premises, equipment, technology. You must communicate with the people who are involved in this process. For example, in a beauty salon, people usually come to a particular master. Therefore, when acquiring a ready-made company, it is important not to lose valuable personnel. These details must be included in the contract.
It is impossible to prevent all risks. But what every entrepreneur can definitely do before to buy a business in country:
- Conduct a quality audit, which is the first and mandatory step towards a purchase. It implies verification of documents, licenses, debts, unpaid fines. The analysis and audit of the legal side of the project and financial indicators is carried out.
- Assess the customer base. As a rule, the volume and number of regular orders, the list of the largest customers and the market profit are checked.
- Before buying a company in the US, it is necessary to analyze the competitive environment. It is necessary to choose the average between a tough struggle and the complete absence of competitors, which is also a bad sign, meaning a reduced demand for a product or service in the region.
- Check the reputation of customers, workers. You can do this on the Internet by typing the name of the company in a search engine and reading reviews. In parallel, we advise you to talk directly with employees, customers and competitors. alternatively, become a mystery shopper and personally assess the situation.
- Assess management risks. It should be understood that the purchase of a ready-made business implies the acceptance of the problems of the transferred enterprise. And before the business becomes yours, you need to evaluate the feasibility of investments, the capabilities of the team and the return that the company will bring.
You should be alerted by the seller’s intention to urgently carry out a deal with a rigid reference to a certain date, refusal to provide legal or financial information to the company, concealment of the reason for the sale of the business.
What to buy?
The most profitable in the US are business areas related to Internet commerce, fintech, and remote services.
In America, a foreigner can develop in almost any area of business. Moreover, investors can use this opportunity not only for the purpose of making a profit, but also for the purpose of immigration. About 20% of immigrants received a residence permit in America, having previously issued a business visa.
Here are examples of a US business for sale for purchase by a non-resident:
- There are a huge number of car owners in the USA, so buying a service station will be a very profitable investment. The cost of the project starts at $43,000.
- Restaurant business. You can buy a well-developed business, for example, a pizzeria with its own delivery service, from only 150-200 thousand dollars.
- A beauty salon in a prestigious area can be bought from $95,000.
- Amazon business, that already exists, that sells food products. Prices start from $350,000. Promised sales volume for a year of $500,000 and net profits of $120,000;
- A logistics corporation in New Jersey that has been on the market since 2012 is for sale for $460,000.
Franchise
Another way to organize your business is franchises in the USA. The essence of this – is that you buy the rights to use a well-known brand, conduct business on its behalf, receive the support of the owners and regularly transfer some percentage of the profit to them.
However, in this case, you have practically no right to freedom of action. You are limited by the internal rules adopted by the main company.
