- December 20, 2016
- Posted by: admin
- Category: Buying a Business
Many of us anticipate seizing opportunities in 2017, including the prospect of buying a business. A new year means new opportunities, after all, but it can also bring with it a host of new changes. If you are not prepared for these changes, you could easily be caught off-guard and make the wrong decision.
Prepare for what 2017 may hold for you and your potential business opportunities when you consider these five important points:
1. A Huge Rise in Boomer Business Sales
Millions of people who own businesses in the U.S. are approaching retirement age. These baby boomers have been starting and running successful businesses over the years, but are now looking to exit gracefully to enjoy the wealth they have accumulated.
In 2017, experts anticipate that the rise in boomer retirements will lead to more businesses sold than any year prior. Since baby boomers own 68% of small businesses in the country, the sales in the upcoming years will represent a huge ownership shift over the next decade. They also present rare opportunities to capture established, closely-held businesses that are not likely to trade hands again anytime soon.
Those on the lookout for investment or ownership opportunities should therefore eyeball business listings closely and prepare strategically – to take advantage of the most critical opportunities of 2017 and beyond.
2. Increasing M&A in All Industries
The business climate is racing towards increasing consolidation, making competition somewhat stiffer. 2016 alone saw some landmark mergers and acquisitions in all sectors. Bass Pro bought Cabela’s in a $4.5 billion deal, Sherwin-Williams bought Valspar for $11.3 billion, and drug company, Shire, purchased rival Baxalta for an astounding $32 billion.
In addition, Rupert Murdoch’s $14.3 billion offer to buy U.K. media company Sky in mid-December shows how 2017 may be even more packed with M&A. Companies are going to be aggressively focused on acquiring both competitors and new business lines that can help feed or bolster their primary offerings.
Strategizing with a business broker like Jamie Schwartz, who is also a certified valuation analyst, can ensure that investors find a way to take part in life-changing opportunities coming along the horizon.
3. No More Living Quarter to Quarter
In 2017, companies are no longer responding defensively to market risks. The wounds of the great recession have largely healed, allowing them to return to less-conservative five-year planning models.
With their footing a little firmer underneath them, business owners can look forward to value growth goals rather than protective risk management. Value strategist consultants can help them discover ways to achieve this growth, while gaining a competitive edge. Using analytics and economic outlook models, these consultants will help them identify the most advantageous moves to make and the best methods to hedge against risk while doing so. Such collaborative efforts will likely replace risk-averse and protectionist actions in the coming months ahead.
4. Online Branding Is More Important Than Ever
The internet has proven itself to be a phenomenal platform for low-cost, high-exposure marketing campaigns. Word-of-mouth has now turned into word-of-social-media-post as people look increasingly to their peers and the platforms they reside on for product and service recommendations. According to Texas Tech University, brands with active social media profiles have more loyal customers. When companies and brands engage with their audience, they become less like a corporation and more of a community who shared a vision.
5. Bricks Turning Into Clicks
Brick-and-mortar stores are still closing at an alarming rate. Experts recommend that business owners either provide an online e-commerce component to their sales model or give customers a strong incentive to enjoy the in-store experience, such as through free samples or with immersive décor.
Even if you decide to personally sell products exclusively in-store, provide ample information online for audiences to learn about what you offer and get excited to become a customer.
Entrust Only an Experienced Business Broker in Nevada
One final point to make would be that evaluating business listings has become an even more complex prospect now than it ever was. Seemingly equivalent businesses may reveal themselves to have dramatically different opportunities and capabilities when you know how to ask the right questions.
Start your new year off on the right foot when buying a business by looking to a knowledgeable Nevada business broker, Jamie Schwartz. Contact her today at 702-278-1346, if you have any questions or if you want to learn more about making the smartest business purchases possible in 2017.