Jason Donlynny in his late 20’s has recently bought an existing property management company and he has a few remarkable concepts to tell the media. Donlynny appears to have a commerce degree and accounting background to help ease his accounting work for the company and he says “It was a stable business but it hadn’t grown in recent years so there was great potential there” which is significant because if you have a business background you could search and find out how the company did in it’s past years and from there on you can form many decisions for the business. Another one of his concepts is that buying an existing company has more advantages than starting your own because “There is less risk. The phone rings from Day 1 and you have cash flow and profits from Day 1.” Statistics show that 65% of owners don’t know the value of their business and 93% don’t have an exit plan, these are terrifying results and that is why he says that you should keep in mind to ask about the small financials of the business before buying, for example their bank statements, employee contracts and tax returns. Donlynny concludes by saying this time of the year is a great year to buy business because with 1200 baby boomers retiring every day, there is a perfect opportunity to buy businesses from these retiring owners. - Benny Chiang, Chantelle Morzo, Linda Zheng
With so many baby boomers retiring by the day, I agree with the article that buying businesses from them is a smart choice. By buying a business from a baby boomer, it will already be established and have the market intact. This has a great advantage over starting a brand new business that is known to no one. The already-established stores have the brand power also.
ReplyDeleteI think Donlynny's advice is really beneficial for entrepreneurs who plan to start their own business. I strongly agree with his comment about buying an existing business rather than starting your own business. Firstly, the risk is lower. Secondly, the new owner doesn't have to worry about start-up costs and tasks.
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ReplyDelete@acheung
ReplyDeleteI have to agree with you that his comment about acquiring an existing business rather than starting up a new one is beneficial as the overall risk is lower. To have the assurance that the business has an established target market helps with lowering expenses such as marketing.
- Tim
Buying a existing business really do need a lot of procedures such as checking the income statement, cash flow, balance sheet of the company. There is an advantage of buying existing companies, and it is the low risk that existing companies have. Also, since existing companies have low risk, it is a good time to buy businesses owned by retired baby boomers.
ReplyDeleteI have to agree to this article that it's less risking buying a business then starting one. There are less jobs that the entrepreneur can worry about. Donlynny is smart to buy businesses from retired baby boomers. But isn't being an entrepreneur means that they are confidence to take risks? If he isn't confidence, I doubt his business will be successful.
ReplyDeleteI have to agree on this article about how you should do your research and such before you decide on buying that business. I also agree that it is a good idea to buy business now that baby boomers are retiring. Those businesses by baby boomers are probably more well-known and is an advantage if you purchase that business.
ReplyDelete-shelly
I agree to this article that buying a business form a retiring baby boomer is a great idea. If you were to start a new business, no one would know who you are or how good your products are. Many people would probably choose to buy an existing business because they are already well-known. Also, there's a smaller chance of business failure.
ReplyDeleteIn the article above, they say that buying a business is better than starting one of your own. I disagree with that concept. Buying a business and starting one both have their own individual risks. With starting your own business, having not enough cash flow is one common problem. If an entrepreneur can bypass that hurdle and make a profiting company within a short amount of time, then some serious money will be earned. With buying a business, money will be earned from day 1. That is true, however, you must have the money to buy to company in the first place. Usually, when you purchase a company, you are paying owner the worth of the company plus the profit that they are expected to earn in the coming years. That is why the company will earn money from day 1, but how long will it take for you to break even and cover all the costs it took to purchase the company in the first place?
ReplyDeleteI totally agree with you about this arcticle. We should always do a research before making any decision of running you own business because you don't want to end up opening a store where you won't be making any money. One has to figure out the target market, location and then should make a decision to run their own business.
ReplyDeleteNitasha Sharma