If you are wondering what is so great about using one’s business skill to make money, I am not talking about growing your business and making money from it. I am talking about how flipping businesses can make you a lot of money.
What do you mean by flipping businesses? It is the process of buying a business that is on the verge of shutting down. You buy the business and turn in around and hold on to it till it makes a profit. You then sell it at a much bigger profit to another businessman or one of the partners of the same business.
Every year so many businesses are closing down for various reasons. It is estimated that about a third of all companies in the US is owned by people above 55. Many of them can be expected to sell their business and go into retirement. Buying these may not prove to be too much of a difficulty.
Flipping businesses is possible because every year around 470,000 companies close their doors due to one or the other reasons. These companies can be purchased and turned around. Statistics say that out of these only around 40% are worth looking at. But that itself is a huge number.
If you are good at managing a business, you can turn around a company within around 90 days. There are many factors that support flipping businesses.
Benefits Of Business Flipping
Firstly, there is not much competition in this field. While real estate flipping is done by so many people, business flipping is not done by many. This gives you a better opportunity at making more money.
A very big advantage is that the financing is done by the seller himself by carry back financing. This means you don’t have to go searching for finance. If you can strike a good deal you start making money from the next day onwards.
Almost all businesses which are running at a loss can be turned around in a short period. Mostly the period is only between 60 and 90 days.
As the control of the business is completely in your hands, you can take it on the course that you choose. In real estate, there are too many state regulations that need to be adhered to.
In total, flipping businesses is a good way of making money in a very short period. All you need is to use your business skills.