The old saying that the UK is a nation of shopkeepers isn’t far from the truth. The desire to enter the wild world of entrepreneurship has never been stronger. According to one study, almost half of UK adults are thinking about starting a business.
Buying an established business with an existing customer base is one option if you want to increase your chances of success. It helps you avoid those initial growing pains by jumping right into a venture that’s already making money.
That’s why at Cogogo, we have a range of dedicated listings for UK businesses that are on the market now and already have a nationwide network. If you’re ready to make your business dreams come true, there’s never been a better time to do it.
Business for Sale Listings
Why should you invest in a business with a nationwide customer base?
Buying a business with a nationwide customer base means you’re skipping that initial startup phase. Granted, it’ll cost you more than doing it yourself upfront, but with 5.5 million small businesses in the UK, there’s no shortage of opportunities capable of delivering a strong rate of return.
So, why should you be looking at firms with an existing nationwide reach?
- Risk Mitigation – Already have a nationwide customer base? Then you’ve got diversity, meaning you’re not relying on a single location or client to keep you afloat. With seven out of 10 businesses being younger than 10 years old, buying a national business gives you a greater chance of success.
- Scalability – A business with a national reach already has a proven product or service. It means you’re primed to scale, whether that’s even further in the UK or even abroad.
- Financing Options – Everyone knows the importance of financing for growth. A business with an established track record is far more appealing to banks and independent investors than one that came into being yesterday.
- Brand Recognition – Your target audience already knows the brand. A nationwide brand has an existing reputation, which you can leverage further to achieve growth and generate even more business.
- Data Access – Today’s business world runs on data. When you buy into an existing nationwide business, you’re also buying the customer data and sales insights that come with it. This is crucial for refining your offerings and getting off to a quick start.
Nationwide businesses for sale have benefits you’re not going to get when starting from scratch. Additionally, you’re increasing your chances of not only surviving for years to come but thriving because you’ve got an established operation from day one.
How to find a national business for sale online
The business market isn’t as straightforward as buying a house or a car because so many companies are sold via word-of-mouth. It makes it more challenging to uncover these opportunities if you don’t have an existing network to tap into.
Generally, your options include:
- Dedicated online marketplaces and directories, including Cogogo.
- Business broker networks with strong connections throughout the UK business landscape.
- Active prospecting, including through digital marketing, trade shows, and social media.
Of course, if you’re lucky enough to have business contacts in your target sector already, this is the best-case scenario. That’s why it’s worth exploring your network to see if there are any active listings.
Valuation methods for buying a national business
An accurate valuation is critical to ensure you’re not overpaying. Paying an inflated amount doesn’t give you any recourse for backing out later. Ordering an independent valuation from a professional does require an upfront investment, but it’s the type of cost that could save you thousands of pounds.
The correct valuation method for a national business is less about size and more about the industry in question. Generally, the aspect that changes with a larger business is the complexity of the valuation process.
The three categories are:
- Income-Based Approach – Essentially, this is a focus on future earnings. For example, the Discounted Cash Flow (DCF) method projects future cash flows before discounting them back to the present value. It’s a popular option because it works best for stable, mature businesses.
- Asset–Based Approach – An asset-based approach establishes value by looking at tangible and intangible assets. A net asset valuation will value a business’s assets and subtract its liabilities. Again, it’s a popular option for nationwide businesses because they tend to be stable and/or asset-heavy.
- Market–Based Approach – The market-based approach is basically about valuing a business based on similar companies that have recently been sold. If a valuation agent uses the precedent transaction method, they’ll focus on real-world market transactions to arrive at a fair figure.
But what matters is that you’re outsourcing this to a professional to ensure accuracy. Before that, though, it’s time to start looking at what today’s market has to offer. If you’re ready to start the process of buying a UK nationwide company, contact Cogogo now.
