Location, Location, Relocation
We hear it every day from prospective buyers: I’m looking to relocate.
Buying a business can be an excellent way to introduce yourself to a new city, although there are some additional minor hiccups and hurdles that can come along with moving your life to a new area for a business venture. Here are the top three things to consider when reviewing a business in another location.
1. Cost of Living
This is an essential piece of the puzzle: will it cost you more, or less? Geographically in North America, cost of living can vary widely by state, region, or even zip code. A business profiting $500,000 a year may look like a cash cow to buyers in the Midwestern or Southern states who enjoy low home prices, but in California’s Bay Area, that may be wildly different, as the median sale price for a house is nearly $1M.
2. Trusted Advisors
You may have an excellent working relationship with your current attorney or accountant, however there may be different laws or state regulations which your lawyer or CPA might not be aware of in another city. We suggest making this determination based on the individual’s expertise and level of comfort.
3. Transition Period
This is key: when relocating, you may want to consider working with the Seller for an extended transition period so there is time to make all the necessary introductions to clients, vendors and associations. This will not only ensure the ongoing success of the business, but give an incoming buyer the opportunity to get to know “who to know” in a new city.
All in all, purchasing a business is an excellent way to acquaint yourself in a new area. As of 2019, the Fastest Growing Cities in the US were:
- Midland, Texas
- Myrtle Beach, South Carolina
- St. George, Utah
- Lakeland, Florida
- Odessa, Texas
- The Villages, Florida
- Greeley, Colorado
- Boise City, Idaho
- Bend, Oregon
- Provo, Utah
Source: US News & World Report
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