Bath Business for Sale: Be Careful When Buying an Existing Business
The lockdowns resulting from the pandemic forced many to question the design of their homes, and bathroom remodels skyrocketed nearly 50% more than previous years. A recent survey showed that 23% of homeowners plan to remodel or sell their homes. Bathrooms are the number one area for those renovations.
If you’re one of the many to have picked up on this, you may have found yourself looking for a bath business for sale to take advantage of the escalating home improvement industry. Buying any business is a complicated investment with various factors to consider. The world of bath remodeling is no different. Let’s visit the ins and outs of buying an existing bathroom remodeling business.
Benefits of Buying a Current Business
Beginning your new business with a head start carries some obvious advantages. Some of the most important things to gain from buying an existing business include:
Access to Supplies and Expert Staff
When purchasing an existing bath business for sale, it’s likely that you’ll also gain other commodities along with it. Most commonly, these include supplies, or established relationships with industry suppliers, and a knowledgeable and trained staff. Many future business owners appreciate buying a business with some of the most valuable components included.
Established Customer Base
An existing business likely equates to a history of purchases from other customers. Established customer bases enable new business owners to shift focus from gaining to retaining business. If you buy an established bath business you will inherit its brand name and exiting market share which can say you a lot of time and money in the long run.
Better Financial Standing
Existing customers mean existing revenue streams. This sets the business up for profitability from an earlier stage. The collateral of an established brand provides financial benefits. They may assist in obtaining further funding from financial institutions as lenders can review the existing bath business’s finances.
Established Brand Name
Starting a new business from scratch in a marketplace full of competition is not an easy feat. When you buy an existing business, if you do your due diligence, you will have a good idea of how well established the brand is within the community you are serving and you can spend less time marketing your brand to the public and more time serving your customers.
Downsides of Buying an Existing Business
Unfortunately, buying bath business for sale, or any other business for that matter, isn't always positive. Some of the biggest drawbacks of buying an established brand are:
If the bath business for sale has PR issues, that can be bad for your business moving forward. Be sure to do a thorough check on the business's reputation, including customer reviews and any past and pending legal issues against the business. Even if your customer base knows there is new ownership, it may be hard to change a negative opinion or experience they had with the brand. And you definitely do not want to inherit any lawsuits, so do your homework first.
Sizable Initial Investment
It is doubtful that an established business would cost less than starting from the ground up. Buying an existing business will require a sizable initial investment. It will also eliminate your ability to start small and build your way up. If the business is a successful one – as in, the kind you’d want to buy – it will require a more significant upfront investment.
Buying a business is a huge responsibility. Businesses that are for sale could be for sale for a specific reason. There is always the possibility that an undisclosed problem within the business could make itself known at some point. Things like payroll and sales tax payments are often missed prior to and/or during a change in business ownership, and as the new owner, you can be liable for them. It will be necessary to consult with an attorney and/or an accountant to help you evaluate the existing business for sale.
Lack of Training & Support
You ideally want to have experience in the business niche you are buying, as once you buy the business, it’s on you to run and its success solely depends on you. Often you cannot depend on the previous owner or its employees to teach you all the ends and outs on how to maintain the company’s current success. It could also be difficult to turn it around or take it to the next level if you don’t have expertise in the industry.
What to Look Out for When Buying an Existing Business
When buying an existing business, closely examining every element is crucial. As visited above, sometimes issues may hide underneath the surface. It’s essential to make sure that you are not taking on a poor investment. Always conduct investigations into both the financial and social aspects of the business.
Are There any Better Options?
For some, the weight of taking on an entire operation themselves can be quite overwhelming. While the benefit of an established brand can be helpful, it may not offset the stress of handling it alone. In these cases, buying a franchise may be a better option for you.
Franchises offer many of the same benefits listed above and then some. Franchises like Bath Tune-Up have an already established, proven business model to set up you for success and provide you with the training and support you need to run your business effectively. Bath Tune-Up’s leadership team is invested in your success, so they take great strides to ensure it.
Ultimately the right choice is up to each individual. Some prefer the total autonomy of a business that’s entirely theirs. For many, franchises offer an established, recognizable brand and a head start for success.
Buying a Bath Tune-Up Franchise
Looking for a bath business for sale? Bath Tune-Up offers the opportunity to become a business owner while capitalizing on the great name already built around our brand.
Interested in learning more? Reach out and let us know. One of our expert franchise consultants will walk you through the business model and discuss whether or not the Bath Tune-Up franchise opportunity is right for you.