Recently, a BBC News article reported some positive economic news. First, that the Office for National Statistics had concluded recent sales volumes were up 2.8% from the previous year. Second, that the percentage of “economic shrink” was less than predicted.
The most recent International Monetary Fund (IMF) overview of the United Kingdom also publicised good news. IMF analysts felt that economic activity would move forward, albeit at a slow pace. They also predicted that inflation, which has been steadily declining over the past year, will continue to do so, reaching the 2% target rate. Lastly, the IMF assessed that the UK government’s attempts to stabilise and rebalance the economy, as well as stimulate it, are good efforts in the right direction.
Despite this positive news, the current situation is still sluggish. Many analysts characterize the economy as stagnant. Some business sectors continue to under-perform badly.
The “back and forth” nature of the argument raises the valid question as to whether now is the time to [tp lang=”en” only=”y”]purchase an existing company online[/tp][tp not_in=”en”]purchase an existing company online[/tp]. Consider these titillating facts quoted from an article by USA Today:
- 16 of the 30 corporations that make up the Dow Jones industrial average got their starts during recessions.
- Disney began during the recession of 1923-24.
- Hewlett-Packard was begun during the Great Depression (in 1938).
- Microsoft began during the 1975 recession.
In addition, Santandar Business Banking reports that average companies expect an 88% increase in their revenue over the coming five-year period – about 13% per year.
So, why could buying a business online during a period of economic downturn be a great idea? Let’s look at a few of the major factors.
Perhaps the greatest advantage is the reduced costs. Virgin business magnate Richard Branson writing for The Telegraph states that a recession is a good time for getting into business because “almost everything costs 50pc to 90pc less than during the good times”. This includes staff. People are often willing to work for less. In addition, company closures may mean that superb staff are out of work, just waiting for your offer of employment.
Considering those company closures bring us to the next advantage – reduced competition. Tough economic times really test a company’s soundness, and only the best survive. This weeding out allows the remaining companies an opportunity to capture a greater market share.
Lastly, many companies report that recessions are a tremendous opportunity for getting back to basics. These companies say that they were compelled to assess all aspects of their core business, making tough decisions to trim back where needed in order to recapture their “leanness and meanness”. Another area focused on was clientele, taking a hard look at just how these important people were being cultivated.
For those who have the ability to invest and weather the storm, buying a business online now can be a start to a very profitable future. More information can be gotten from UK small business advice groups and UK BBA government initiatives.
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Guest article written by: Jan Hollins. Jan works with Premier Business Sales who offer an exciting range of businesses for sale online.
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Guest article written by: Jan Hollins. Jan works with Premier Business Sales who offer an exciting range of businesses for sale online.
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Online business is the way to go at this kind of times. People are becoming more and more aware and “confident” about getting services and buying stuffs via the internet.
Thank you for sharing. Today a lot of people are prefering to start an online business instead of going to search a good job. Your are able to save your money, your time, your manpower, your effort and you can work at any place and any time. that is why now competition at online market is getting higher.
Hello Jan,
Your question is thought provoking and only an expert can answer this correctly. Online businesses have prospered a lot in the recent past and if everything is going on as planned, one will not find a reason to sell though there may be buyers in the market. Of course, some owners do show willingness in selling off their business when they feel that they are done. In such cases, it is a good decision to buy the business.
Regards,
Vijay
online business is good if its working, so its best if you have backup plans in case it does not work
When you are about to buy a business, make sure that you do a lot of research before you actually buy one. If the business is online, make double the effort you would do for an offline business! Better safe than sorry!
In present scenario business online is growing hike. Every body has become aware and taking benefit in there business.
market seems to be little good nowadays!..
Buying a business online now are serious if yes then its not good idea that i think. Anyone who have too much experience can Handel this only.
What i think is that online business is tricky. there are many scams online, however there are still also some good bargains but it takes a lot of research to know about them.
Yeah! if you really want to be ahead of your boss in terms of living.
You better resign and start doing business online. A lot of people now are happy with the results that the online business have given them that being an office employee!
Hello Jan,
Thanks for your sharing. There is a lot of advantage of putting up a business online rather than preferring to remain offline. Why? This is because the internet has become a hub where everything becomes available with just a few clicks each time. You can find anything you need – from gadgets to clothes to food!
All you really need to do is find a specific product that you can sell online and then start building your own website. You can even add up to that as you go learning the basic stuff that you need to know in order to enhance your online business. You can enroll in various tutorials that are offered online and find useful tools that can boost your online business.
Start an online business and get the fruits of that venture soon. The only thing you really need to know about it is that you can do this business without even tiring yourself to death as is expected when starting an offline business.
An important reminder, perhaps, would be to learn all the essential tips and techniques that will help you with your online business.
I agree with many of you here, I do think the internet is a great way to start a business and take advantage of the fact that many people are now more likely to use the internet to do things they perhaps used to go out and do! However, doing this require a lot more effort and the right market so make sure you can efficiently do this.