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Want to buy an existing Automotive type business
If I was planning on buying an existing Automotive type business, I would Develop a business plan and contact SCORE. SCORE is FREE.
*Good luck and happy Thanksgiving*<!--Session data-->
Don't know much about automotive niche markets - but can tell you that most gear heads would rather spend money on their babies (their vehicles) than on food. I would suggest this - find a local SCORE or small business development center (SBDC) in your area. They are part of the SBA and free to use. They can help you research your local market and answer many of your questions - especailly about your local market. They have tons of research and data at their finger tips.
Also, think about this. While the current business is in a very narrow niche - it does not have to be. If you purchase the business, there is no reason that you can't broaden the niche by adding additional products and services or by extenting your reach.
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First, I would recommend that you work with a business broker for buying the business. It shouldn't cost you anything. The seller is typically responsible for your broker's fees. Working with a quality business broker will ensure that you get the best deal possible and will help you with getting the necessary licenses.
A business broker focused on your particular niche may have additional market data. You can request info from the seller as well.
Second, I would recommend that you do research on the various car clubs in the area that focus on late model American cars. You can pose as a potential interested member or explain your situation and ask questions about the size of their membership and the types of cars their members have.
Hope this helps.
I am a business broker so I am biased in agreeing with you that he should work with an experienced broker.
But, I will tell you that I charge whomeever I am working for - the Buyer or the Seller.
No one works for free and if you are not paying the broker, it means he is probably not focusing on truly helping you buy a business and once one is idenitifed, they are giving advice for the benefit of a sell - a very expensive proposition.
I don't disagree with your statements. I didn't detail the answer out further in my original response other than mentioning that the seller "typically" pays the brokers fees. If the seller doesn't agree to hire on the broker, then yes, the buyer would need to pay the fees.
And I would also agree that people focus their attention on where they earn and less so on what they do for free.
Sorry I didn't further detail my beliefs and experience in my original response.
However, would you agree that if a broker is dedictated to a sale / purchase (i.e. getting paid), then a broker can provide valuable advice that a first time business owner may not be aware of?
Solo/Bridge: Thanks to both of you for your responses and advice. The car clubs will be helpful and I have a good relationship with an honest broker which I have a buyers agreement. He has been diligent in working with my search. In this market I believe any money made is good money as long as I am doing due diligence for my own protection. I have also followed the advice of the other responders and hooked up with my local SBDC which has provided some good industry research. unfortunately nothing specific to the late model car aftermarket parts sales and performance modification market in Florida. I am still seeking information on costs and profit margins of American & Import repair markets.
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I am actively searching to buy an existing automotive repair type business. Have 15 yrs business management and sales experiece working for others with life trade and hobby experience in mechanics and construction. I know the well run independent consumer repair type garages are doing well and have actually increased business over the last 2 years. However, I have found a business that peaks my interest and believe it is lacking the focused efforts it needs to grow. Unfortunately it is a more niche related business than I would like to have limiting the revenue stream to just high performance upgrades with parts sales and only focusing on higher end American made late model cars. My question, what is the size and viability of this specific market mainly in Florida? There are so many speed shops as well as on-line parts distributors I need to know just how vast this niche market is and what the current demand is given the current economy. Is it growing? Declining? Saturated? Has this upper aged customer market segment taken a hit or been unaffected? Any experienced or opinionated feedback would be helpfull.