The advice for any retiree or anyone thinking of retiring is to keep active. For some, that means playing golf regularly or signing up to a seniors’ class whilst others are looking at starting a whole new adventure by buying a business.
Over 28% of business owners in Australia are in the 55-plus age bracket and many of them started their businesses decades ago. However, an increasing number are acquiring established businesses to give them a steady retirement income, a project to get passionate about and keep them physically and mentally active.
Getting into business
When most people think of starting a business, they think about building the company from the ground up – not something the average retiree fancies doing. The hours needed to start from scratch, build a customer base, market the company etc. doesn’t fit all too well with the slower pace you’d expect from retirement. Sure, it’s exciting to start from scratch but often too risky for people who have worked their whole lives for a little comfort and security.
Instead, there is a growing trend for buying existing businesses as a low risk long-term investment. The benefits of buying an established business are many, including:
- The business is already generating cash flow and profits.
- The customer base is established.
- Existing positive reputation.
- Knowledgeable and experienced staff in place.
- A successful business model will already exist.
- Easier to get financing for a profit-generating business than a start-up.
Choosing the right business
You don’t want to buy a business that will be obsolete before you’re ready to cash out so look at industries people are always going to need. The whole point of buying an established business is a steady income with opportunities for growth and for that reason many new business owners are acquiring supermarkets.
Supermarkets are a great investment for many reasons. They’re a good source of steady revenue and the growth of online grocery shopping is more of a complementary rival than a deadly competitor. Supermarkets are always primed for product diversification so it’s straightforward to capitalise on new trends and evolving customer requirements. Many supermarkets are an integral part of their neighbourhood so they boast incredible customer loyalty.
When purchasing an existing business, you’ll want an acquisition team to help you with your due diligence from why the business is for sale, to future sales forecasts, supply lines and viability. With the right team, buying a supermarket can be a simple process and here at ASB we’re specialists in brokering supermarket acquisitions.
We’ve been in business since 2002 and our focus is exclusively on supermarket business sales. ASB can help you identify a supermarket that meets your requirements and fits the lifestyle you want. From pinpointing the best locations to setting and achieving realistic financial targets, ASB has the knowledge you need to ensure your investment continues to pay for the long haul.
The benefits of buying an established business outweigh those of starting from scratch. Buying a supermarket in particular promises greater chances of achieving a stable ROI faster than many other acquisitions.
You can rest assured that with our expertise and available resources, you will receive all the guidance you need so that you can smoothly ease into your new business venture in the shortest possible time and avoid the common pitfalls of buying a business.