Purchase of Existing Companies

A sign of a profitable business means receiving a stable income and green-cards. The first thing to that you should do is to determine your objective: is it to buy a business or to receive income from business? It is very important to understand the difference of these.

If your top priority is to buy a business, then you should better contact us instead of “real estate brokers” selling ready-made businesses. Business brokers charge a commission on the sale of businesses and will definitely talk you into buying one. This is where the work of real estate brokers ends. What happens to the business after that is not their concern.

If your goal is to get profit from business and get a green-card, then you’d better work with people who are interested in organizing and growing the profitability of your business. We specialize in management of commercial companies, and only earn money when the businesses we manage in America are successful and bring income to you. Why do we not sell hairdressers for about 20000 USD? We know that dozens of Russians are ready to buy such a business and start boasting in Russia about their “SPA-centre at US Western coast”… But we do not deal with such businesses because such a business brings you a $200 income and no green-card. Besides, if you earn $ 200 a month, it means that we earn about $40. We are not interested in that return. Frankly speaking, we do not do business if the profit is very little and hardly interesting at all.

Everybody understands that business is just a tool for making money. Sometimes the tool is not good enough – the store is in the wrong location, wrong products or services. However, the real problem is the inability to use this tool.

If we offer to purchase a business it means that we see both your profits and our profits in this business. In the USA, zoning is very important, i.e. determining the zone in which a business is situated (or is supposed to be situated). If you choose a business by looking at the map without knowing the city, we can give you a 100% guarantee that it will be a problem and will bring you losses. Let’s put it this way: the city has several zones (blocks), where a certain business can be successful. If you are not aware of the division into different business zones (zoning), the probability of your business loosing money while located in the wrong zone is higher than when it is located in the right zone or favorable for a particular type of business. A zone can cover several blocks of one street. But if you place your business on the same street several blocks up or down from the appropriate zone, the losses and problems are inevitable.

For this reason, we do not work all over America. We cannot know the right zoning in all cities and areas of the USA. We work only in San Francisco, in the Bay Area (the area of San Francisco Bay where the whole Silicone Valley is situated), Las Vegas and in certain areas Los Angeles. Generally, we work in California and Nevada.

If somebody promises you to create or buy a successful business in any place in the USA, it is most likely that this person either lacks experience in creating and managing a successful business, or he/she just cannot adequately assess his/her own capabilities.

By looking in the Internet, you will find thousands, or dozens of thousands of businesses for sale. There seems to be no problem. You can easily loak around and figure out which business deserves to be purchased more or less. However there is this little thing – ask yourself, why are all these businesses for sale? Of course there could be different reasons for that but according to our observations, 90% of cases business is offered for sale because they are sinking. It is exactly during this period between the moment of deciding that it is better to get rid of the business rather than keep it going and face eventual bankruptcy. Thus, people are desperately trying to sell it. I.e., you get behind a steering-wheel of an airplane that for different reasons is falling either quickly or slowly. Do you really want to fly it?

According to our experience, our clients appreciate a comprehensive approach. “If you bring me income from my business, then you can help me with the green-card.” The US government is interested in successful business people because they pay taxes. If we manage your business and bring you income, it means that America sees you as a successful businessman.

It is not easy to find a potentially profitable business. Those companies that we offer for sale and subsequent management have some problems. As a rule, these problems are related to management issues because force majeure problems are beyond our control. Force majeure in this case could mean construction of a highway at the location of the business, filing a suit against the business and its owners, a typhoon, tornado etc. If we do not see our profit from managing the business, it is not interesting for us (and for you).

There is a good question: Why don’t we buy these businesses ourselves? We could easily buy them manage them and raise profits from them, right? We are the managing company. We earn a considerable commission from selling a business to you – this is not a secret. Then we keep making money by managing it for you – this is no secret either. Everything is fair. What you finally get is a business, income, and the green-card. If we could not earn money for ourselves, how could we earn it for you? Remember that the income of a business owner (i.e. your income) is always higher than income of the manager (i.e. our income).

In most cases it is not that important for clients which business gets them income – they may have income of about 100,000.00 – 300,000.00 USD per year as long as they have a green-card

However there’s still some romantic affection – somebody dreamed of keeping a restaurant in the USA from their childhood; maybe because it’s considered prestigious. For that reason, we will find a restaurant for such people. Let us immediately forget about fast foods for 50,000.00 USD – no money, no green-card, and just a wasted dream (and lost appetite). Do note that a profitable restaurant in the right place with the right marketing is not on the sale lists at any point of time. However, there is always such thing as competition. One of 5-6 restaurants would have weaker management and worse results as the rest. Weaker management means lower profits. The feeling of the lost profits is our favorite business owner syndrome. Then we compare the figures of how much the owner could earn if nothing is changed and how much he would gain by selling the business in full or in part. As the saying goes “every man who has a car wants to sell it and buy a new one”. This saying universally applies to any company owner. It’s just a matter of time. We are not geniuses either, so we do not save on inviting an expert who has an excellent knowledge of a particular field, or current problems of the business owner and can smell the mildest change in the atmosphere of the particular business. You should know – he can smell them for you.

Strictly speaking the risk of buying a company is higher than the risk of depositing the money in a bank for a fixed interest rate, but the income is also several times higher. Try to objectively assess your capabilities. A good income is gained by people who are smart, think fast on their feet and do not lose their momentum.

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