Manage episode 262425157 series 2518941
One of the most popular ways to become a business owner is to acquire an existing business. And the easiest way to qualify for financing is through the SBA 7a program.
Before I highlight the advantages of the 7a program, I’d first like to raise the point that acquiring an existing business is not always the best route to becoming a business owner. In some cases it makes better financial sense to start a new business rather than acquiring an existing one.
Here’s the test I like to apply. If you’re able to start a new business with similar or less capital requirements, and ramp up revenue and profitability within two years from opening, it’s likely best to start a new business.
If this is not the case, you can confidently focus all your attention on finding the right business to acquire.