Exploring buying a business in the Austin area (Avery: for sale, real estate)

[COCUE]

My husband and I are interested in buying a business in the Austin area. We each make more than enough for us to live comfortably on one income here and part of the plan moving here was to have a scenario where one of us would keep their job (i.e for regular income, benefits, insurance etc) and we buy an existing business with consistent cashflow where the other person works on that full time till such a time it grows enough that it makes sense for both of us to work there together.
We are not looking for a start-up and neither does it have to be sexy just solid honest business that we can grow and employ others as well.
We just started doing more research but was wondering if CD'ers can recommend resources that we can tap into for a variety of things including finding such businesses for sale in the area, meeting like-minded folks who we could learn from and possibly for mentorship, resources that we can learn how to effectively evaluate these businesses, depending on the cost - best financing options etc
Appreciate any pointers
Thanks

[jwynne2000]

It sounds like a franchise or turnkey type business might suit you well.

[10scoachrick]

Neighbor, we could sure use a family-style BBQ restaurant here in Avery Ranch!!! I would even help!

[austin-steve]

Originally Posted by COCUE

My husband and I are interested in buying a business in the Austin area. We each make more than enough for us to live comfortably on one income here and part of the plan moving here was to have a scenario where one of us would keep their job (i.e for regular income, benefits, insurance etc) and we buy an existing business with consistent cashflow where the other person works on that full time till such a time it grows enough that it makes sense for both of us to work there together.
We are not looking for a start-up and neither does it have to be sexy just solid honest business that we can grow and employ others as well.
We just started doing more research but was wondering if CD'ers can recommend resources that we can tap into for a variety of things including finding such businesses for sale in the area, meeting like-minded folks who we could learn from and possibly for mentorship, resources that we can learn how to effectively evaluate these businesses, depending on the cost - best financing options etc
Appreciate any pointers
Thanks

There are 2 main ways:

1) Look for businesses for sale. They are advertised on sites such as:
Austin, TX Businesses For Sale - BizBuySell.com
Austin Texas Businesses For Sale | Buy Austin Texas Businesses at BizQuest

2) Decide what type of business you want to own and approach existing owners.

Advertised business listings are usually represented by a Business Broker, which is sort of like a Listing Realtor but for businesses, and they don't have to have a real estate license unless selling real estate with the business. You can google "Austin Business Broker" and find a ton of them. Most have their own listings on their own websites.

Unfortunately there isn't the equivalent of a "buyer's agent" for business purchases. A Business Broker can represent you, and there may be some who will conduct some groundwork to locate a specific business if you want to buy, for example, a BBQ restaurant or an oil change business, but you'll generally be working on your own to find something otherwise.

Finally, most franchise owners eventually come to resent the high fees. Franchises are good for corporate mid-manager types who fear risk, need policies and procedures, and are not good at figuring things out or starting from scratch on their own. Franchises are also easier to finance since there is a system in place and metrics that can validate the model. It can be the right solution for some, but many get into it and realize that the royalties overhead eat their lunch, and they could/should have figured out how to start up on their own.

The best business opportunities are mom and pop businesses with unrealized growth potential. A place that's been loping along for years as the unambitious owners age and burn out. New blood can really add value to that kind of business.

Anyway, that's a quick overview of what I know. I've bought and sold businesses and started from scratch twice. Starting from scratch is the most fulfilling but the riskiest. But if you have an income to fall back on, the risk is reduced.

Steve

[jwynne2000]

Originally Posted by austin-steve

There are 2 main ways:

1) Look for businesses for sale. They are advertised on sites such as:
Austin, TX Businesses For Sale - BizBuySell.com
Austin Texas Businesses For Sale | Buy Austin Texas Businesses at BizQuest

2) Decide what type of business you want to own and approach existing owners.

Advertised business listings are usually represented by a Business Broker, which is sort of like a Listing Realtor but for businesses, and they don't have to have a real estate license unless selling real estate with the business. You can google "Austin Business Broker" and find a ton of them. Most have their own listings on their own websites.

Unfortunately there isn't the equivalent of a "buyer's agent" for business purchases. A Business Broker can represent you, and there may be some who will conduct some groundwork to locate a specific business if you want to buy, for example, a BBQ restaurant or an oil change business, but you'll generally be working on your own to find something otherwise.

Finally, most franchise owners eventually come to resent the high fees. Franchises are good for corporate mid-manager types who fear risk, need policies and procedures, and are not good at figuring things out or starting from scratch on their own. Franchises are also easier to finance since there is a system in place and metrics that can validate the model. It can be the right solution for some, but many get into it and realize that the royalties overhead eat their lunch, and they could/should have figured out how to start up on their own.

The best business opportunities are mom and pop businesses with unrealized growth potential. A place that's been loping along for years as the unambitious owners age and burn out. New blood can really add value to that kind of business.

Anyway, that's a quick overview of what I know. I've bought and sold businesses and started from scratch twice. Starting from scratch is the most fulfilling but the riskiest. But if you have an income to fall back on, the risk is reduced.

Steve

Very astute advice here. Always enjoy your posts, Steve.

[Austin97]

we have very few good italian restaurants here. The best opportunities are going to be on the outskirts in the areas that are rapidly growing but dont have full retail amenities yet (like leander at 1431 and 183)

[COCUE]

Originally Posted by 10scoachrick

Neighbor, we could sure use a family-style BBQ restaurant here in Avery Ranch!!! I would even help!

Hi Coach Rick... I too am finding that I like bbq ..lol.. But not sure we know anything about BBQ but will look into that.. Maybe we can grab a coffee to talk some more..:-)

[COCUE]

Originally Posted by austin-steve

There are 2 main ways:

1) Look for businesses for sale. They are advertised on sites such as:
Austin, TX Businesses For Sale - BizBuySell.com
Austin Texas Businesses For Sale | Buy Austin Texas Businesses at BizQuest

2) Decide what type of business you want to own and approach existing owners.

Advertised business listings are usually represented by a Business Broker, which is sort of like a Listing Realtor but for businesses, and they don't have to have a real estate license unless selling real estate with the business. You can google "Austin Business Broker" and find a ton of them. Most have their own listings on their own websites.

Unfortunately there isn't the equivalent of a "buyer's agent" for business purchases. A Business Broker can represent you, and there may be some who will conduct some groundwork to locate a specific business if you want to buy, for example, a BBQ restaurant or an oil change business, but you'll generally be working on your own to find something otherwise.

Finally, most franchise owners eventually come to resent the high fees. Franchises are good for corporate mid-manager types who fear risk, need policies and procedures, and are not good at figuring things out or starting from scratch on their own. Franchises are also easier to finance since there is a system in place and metrics that can validate the model. It can be the right solution for some, but many get into it and realize that the royalties overhead eat their lunch, and they could/should have figured out how to start up on their own.

The best business opportunities are mom and pop businesses with unrealized growth potential. A place that's been loping along for years as the unambitious owners age and burn out. New blood can really add value to that kind of business.

Anyway, that's a quick overview of what I know. I've bought and sold businesses and started from scratch twice. Starting from scratch is the most fulfilling but the riskiest. But if you have an income to fall back on, the risk is reduced.

Steve

Steve

Thanks a bunch!!!!! agree that an ideal business for us would be an existing business with an unrealized growth potential that we could work towards optimizing. I have checked out the website with businesses for sale that you shared and lots of ideas. Do you think it makes any difference the kind of business it is i.e I've had suggestions about selecting a business in a sector you are passionate about our already know something about e.g., you are passionate about food or a great cook so you choose a restaurant? My own opinion varies a bit. I think that one would be really limited that way as you can only know about so much. For instance I would happily own and run a laundromat or oil change place if good business even though I don't know anything about those industries neither am I passionate about laundry or oil change :-) I think i'm passionate about running a business and think I'm pretty good at it. What are your thoughts if you don't mind sharing them.

Also, any thoughts on what should be our next step. Do you know of any of these brokers that you mentioned we can talk to?

[COCUE]

Originally Posted by Austin97

we have very few good italian restaurants here. The best opportunities are going to be on the outskirts in the areas that are rapidly growing but dont have full retail amenities yet (like leander at 1431 and 183)

Austin 97 - thanks for the suggestion

[scm53]

Originally Posted by Austin97

we have very few good italian restaurants here. The best opportunities are going to be on the outskirts in the areas that are rapidly growing but dont have full retail amenities yet (like leander at 1431 and 183)

I'm not sure that isn't what the market wants. Maybe we have the Italian restaurants that the market demands? I'd watch The Big Night before I thought about opening one.