For budding entrepreneurs, a small-scale, home-based transportation business can be an ideal starting point. All they really need to get started is a list of phone numbers for clients, properly equipped vehicles, and a healthy dose of good, old fashioned business sense. At the same time, though, a business owner won’t be successful without putting in their fair share of funding, time, and sweat equity.
Sometimes, over-zealous new entrepreneurs choose to start up their own transportation business rather than buying an already-established company. Those energetic beginners lack two major benefits of purchasing an existing business: access to customers and fewer expenses.
Finding a reliable client base is always a challenge for those starting their own business. Up-starts often lack the funding necessary for the kind of major marketing endeavors needed in order to lure customers from competing companies.
When a person buys an existing business, existing contracts and customers come with a deal. If the transition period is handled well, those relationships can be maintained for years. Lower expense and fewer risk factors also add into the equation, making buying an existing
transportation business preferable to starting one entirely from scratch.
Working from home, either way, can offer flexibility and financial benefits that other business owners lack.
Even though buying an already-established transportation business may be easier than starting one completely on your own, it’s still hard work. Frustrations like rising costs, ever-changing regulations, and occasional client disputes, can be big stressors.
Small transportation business can be more difficult to sell than those with established locales, due to banks being wary of loaning money to buyers wanting to purchase business with few actual assets. When the time comes to sell your home-based transportation business, you may want to consider the benefits of offering seller financing. At the same time, many larger companies have to carry notes for a portion of the purchase price anyway, these days.
Owners looking to increase their chances of selling a home based business may want to consider seller financing. By offering to carry a note for part of the purchase price, sellers may be able to bridge the gap between their asking price and the amount a buyer can afford.
Working from home in any capacity certainly comes with challenges, particularly if the area reserved for business is close to the family space. It definitely takes concerted effort to separate family life from business life, but then, many other business owners have this struggle, too.
However you’re planning to begin your adventure as a small business owner, The Tenney Group can help you become more familiar with the transportation industry and the sale process, if you decide to look at buying an existing business. With decades of expertise in helping transportation business owners, they can guide you through this exciting new world!