Deciding to become an entrepreneur in Newfoundland & Labrador is a big step forward. However, it’s only the beginning.
The next step is determining whether you want to start a business from scratch, or you want to purchase someone else’s business that’s already up and running.
Buying an existing business in the NL province has some advantages and disadvantages versus starting a new business where you do all the prep work yourself.
If you would like to learn more about how to purchase a business for sale in Newfoundland and how to make it your own, we have some tips for you. We’ll also point you in the direction of multiple resources that are available in Newfoundland & Labrador for those wishing to buy a business.
Pros and Cons of Buying a NL Business vs. Starting a New One
Before making a decision about whether to buy an existing business for sale in Newfoundland & Labrador or to start a business from scratch, take the time to weigh the advantages and disadvantages of each option.
How to Find Newfoundland & Labrador Businesses for Sale
Multiple resources are available that can help you find potential businesses for sale in Newfoundland & Labrador.
Reaching out to a business broker is a great place to start when seeking to buy an existing business in Newfoundland & Labrador.
A business broker is someone who has extensive knowledge about the business market in the province. This person can help you find a business that meets criteria you may have, including:
A business broker may be able to watch for certain types of businesses to come onto the market that meet your needs, even if nothing is available right now. Brokers may learn about businesses that are almost ready to come onto the market, giving you a heads up.
When you are negotiating for the purchase of a business, the business broker can facilitate the negotiations, helping you reach an agreement faster.
Some of the top business brokers to consider in Newfoundland & Labrador include:
If you have a particular location where you’d like to buy a business, such as in a business park in Newfoundland & Labrador, tell your business broker about this, and the broker can keep an eye on this area for you.
Multiple websites exist that advertise Newfoundland & Labrador businesses for sale. Even if you don’t actually purchase a business from one of these websites, they provide some good information for what types of businesses are available and how much they cost.
Real estate brokerages tend to focus more on residential properties and commercial properties than on actual functioning businesses, but you may find some businesses for sale in Newfoundland & Labrador worth considering through these brokerages’ websites.
You may be able to find some smaller businesses for sale in Newfoundland & Labrador through online classifieds websites where the owner is selling the business without the help of a broker. Even though the process of buying a business like this may feel less formal, always have a lawyer and accountant look over the financial statements and the purchase agreement for you.
How to Buy a Business in Newfoundland & Labrador – And Mistakes to Avoid
Sorry to be the bearer of bad news, but you will make mistakes as a new business owner. It’s just part of the learning curve. We put together some tips that may help you reduce the impact of your mistakes or reduce the number of them as you purchase a business in NL.