Every adult in the world has dreamt of financial freedom and being their own boss, at least for a second or two. It’s only the brave ones that take these dreams and turn them into reality. But what if you’re looking at businesses for sale in Edmonton? Well, you’ve come to the right place.
While this might sound like the world’s best job, you’d only be half-right. While running your own business is exciting, dynamic, and fun – it’s also insanely complex, laborious, and challenging, especially if you try to build it from the ground up.
Starting a business from the ground up can be a nightmare if you aren’t experienced, as is the case with most small business owners. For this reason, and many, many more, people opt to purchase an existing business and tailor it to their specific needs, requirements, and wants.
Buying an established business cuts down on most of the labor that goes into establishing a business in the first place, which can be overwhelming for most people.
Below, we’ll talk a bit about businesses in Edmonton, how you can purchase one, what you need to know before you do so. A myriad other things to help you get started on your journey as an entrepreneur and business owner.
How to Find a Good Business for Sale in Edmonton
One of the things you’ll need to know before you start looking for a business for sale in Edmonton is that there is a lot to choose from. While not the most prominent business region in North America, Edmonton is still jam-packed with various businesses.
Now, before you go around searching for a business you’d like to win, you’ll have to do quite a lot of homework. We’d all love to own the companies of our dreams, but that might not always be the possibility.
You’ll have to be realistic with your abilities, capabilities, and, most importantly, resources. The best way to start a business purchase is to put everything on paper.
You should write down what you’re looking for in a business, what kind of profit you’re aiming for, and how you plan to conduct the company itself. But, perhaps most importantly, you’ll have to assemble your finances.
What makes a good business?
Once you have everything put on paper, it’s time to think about what kind of business you’d like to purchase. There are all kinds of businesses for sale in Edmonton. Everything from motels, restaurants, car washes, shops, bars, clubs, and many more are all available for sale in Edmonton – all of which require a different entrepreneurial and financial approach.
Purchasing a business isn’t that complicated, mainly because most of the process can be done through the internet. Long gone are the days of rummaging through the local newspaper or walking down the street and looking for ‘for sale signs.
To help you assemble this information neatly and functionally, we’ll get into how you can make a top-of-the-line checklist for buying a business in Edmonton a bit later in the article.
With that out of the way, it’s time to determine what makes a good business. While a part of that answer is subjective, it will ultimately boil down to the company itself. You’ll want to take care of more than a few things before you fall in love with a business, and most of that comes down to doing research.
Where can one find a business for sale?
These days, you have more than a couple of websites that do the trick just fine. FindBusinesses4Sale has you covered for most of your business purchasing or selling needs. What makes FindBusinesses4Sale an industry-leading website is that it offers all of the features that you need to buy or sell a business – but what makes our approach better than what the competition has to offer? Well, you’ll be delighted to know that finding a business for sale and purchasing it on our website is free for all parties.
But, free services are never quite as good as premium services, right? Wrong. Our service is industry-leading, as we provide both buyers with all of the features they require to buy or sell their business in the best possible way. Search filters, NDAs, and location-based queries are all a common practice on our top-of-the-line website – so make sure to take a look for yourself if you’re of a mind to purchase or sell a business.
Furthermore, we have a wide range of listings available on our website at any time for any place across Canada. Edmonton is one of the most business-populated locations in the country and on our website as well, which means you’ll have an easy time finding something that fits your specific needs.
Things You Need to Know When Looking for Businesses for Sale in Edmonton
Now, putting everything on paper isn’t enough if you’re looking to become a business owner. You’ll have to know a couple of insider tips if you want to make the entire process as smooth as possible.
Following the Licenses, Laws, and Permits
An excellent place to start would be looking into local laws and legislations. Depending on the type of business you’d like to own, you’ll have to research the requirements posed by a regulative authority and see if the place you’re looking at passes with flying colors.
The second thing you have to pay attention to, especially if you’re looking into purchasing a restaurant or something of the sort, is licensing. Many businesses are operating with expired licenses or being sold with a license that is about to expire.
When you think of licenses, the first thing that comes to mind is a liquor license, which you will need to have if you want to sell any alcoholic beverages at your establishment. But, you might be surprised to find out that all kinds of businesses require different types of licenses to operate.
Now, the most basic license you’ll require if you want to do business in the city of Edmonton is a business license, which is relatively easy to obtain.
Asking the Right Questions
If you’re an aspiring business owner, or you’re looking to carve out a slice of the entrepreneurial pie for yourself, you’ll always want to learn from others. Mistakes are the best lessons, but it’s always better to learn from the mistakes of others than your own.
Be that as it may, you’ll come across more than a couple of challenges and hardships on your journey to purchasing a business – but that doesn’t mean that you can’t avoid most of them.
The best way to avoid the most common mistakes in running the specific business you want to purchase is to ask the previous business owner. This will give you first-hand insight into the particular business you’re looking at, as well as a crucial heads-up of what you should expect when you take over. Here are five fantastic questions you should ask the person selling the business, as well as the things you can find out from these specific questions. The best way to avoid the most common mistakes in running the specific business you want to purchase is to ask the previous business owner. This will give you first-hand insight into the particular business you’re looking at, as well as a crucial heads-up of what you should expect when you take over. Here are five fantastic questions you should ask the person selling the business, as well as the things you can find out from these specific questions.
This is by far the most important thing you should ask the previous business owner of a business you’re trying to buy. The reason that the person is selling the business can be a dealbreaker. Some businesses get sold because their owners are looking to retire or take their profits, but others can get sold because things aren’t running smoothly. If the business is being sold because of a problem, you should know it before you purchase it, as it could mean that you’ll face the same problem later down the line when you own the business yourself.
One of the most important things when buying a business is finding out what you’re getting as a part of the package. This includes all of the good things, but it includes all of the prior contracts and leases. These will be crucial if you want to run a successful business, making sure to meticulously go over all existing agreements, contracts, and leases that your potential new business has. Doing this will give you a good perspective on the current state of the contracts and leases, which might highlight some things that require updates, changes, and additional payments.
Just how contracts and leases usually come with a business, so do some positive things such as prepaid expenses. Prepaid expenses are all of the things you get with the business that has already been paid in advance. These can be all the licenses your new business has, prepaid bills, and prepaid subscriptions.
Furthermore, if you’re fortunate, prepaid expenses will include things such as insurance and rent – saving you a significant amount of money on startup.
The assets that come with the business are going to play a significant role in its overall value. Not every business is for sale because the owner wants to cash out; some go for sale because they become unaffordable or unprofitable, and it’s the assets that usually go first.
Assets can include everything from employees to material assets like equipment – and that’s why you’ll need to take a deep dive into all of the assets that come with the business and determine which of them the original owner will keep.
The monthly expenses and taxes are going to be something you have to deal with on the regular, so you’ll have to make sure that you can afford them even when business isn’t as booming as you’d like it to be.
You’ll be happy to find out that the taxes in Edmonton aren’t nearly as
Preparing an Acquisition Plan
Getting a business isn’t as simple as finding one you like on FindBuinsesses4Sale, contacting the owner, and setting the deal up. While that might be the gist of it, the technicalities are slightly more complicated. Aside from all of the homework that you’ll have to do beforehand, you’ll also have to outline a proper acquisition plan.
A good acquisition plan should explore, explain, and substantiate every step of the acquisition. This includes but is not limited to all associated costs, scheduling, technical and business details, management, and many, many more things that go into getting a business for yourself.
This can be a laborious process, and that is why there are more than a couple of agencies in Edmonton that would be happy to help you plan and pan out your acquisition.
Businesses for Sale in Edmonton – Checklist
The best approach to purchasing a business is the pragmatic approach, and the best way to practice pragmatism is to make a checklist. Think of this checklist as something to keep in mind during the entire process, starting with looking for a business and ending up with your first day of running your brand new business.
Now, no checklist would be complete without proper segmentation, so here are five categories and the things you’ll need to keep in mind about them.
- Current industry saturation
- Industry averages
- Current, future, and past trends
- Standard industry practices
The business itself
- Tax and expenses information
- Legal information, license, and permits
- Physical assets and intellectual property
- Existing paperwork and documentation
- The current number of employees
- Existing salaries, vacations, and bonuses
- Employee benefits and
- Job descriptions and obligations
- Target demographic
- Returning customers
- Average customer spending
- Marketing and advertising strategies
- Existing and potential local competition
- Parking and other customer accommodation
- Space for expansion later down the line
- Inventory and storage space
Now, this is just the bare bones of what you’ll need to keep in mind if you’re aspiring to be a business owner. All of these things are crucial, and all will play a prominent role in the business finding, acquisition, and running process – so make sure to either take a screenshot or write them down somewhere.
Some of these will help you determine if the business is right for you, others will help you pick the best business out of the lot, and the last of these will be critical for running the business itself.
You might be surprised to find out that quite a lot of businesses fail during the acquisition process or shortly after the acquisition is accomplished – and more often than not, it’s due to not paying attention to the things on this checklist.
Businesses for Sale in Edmonton – Tax Information
Canada is known worldwide as one of the best places to do business, and a part of that is due to taxes. Alberta is one of the best provinces to do business in the entirety of Canada, and its capital city of Edmonton is its most thriving location.
While the nightlife might not be as booming as that of Toronto, there sure are more than a couple of businesses that are jam-packed with customers and yielding high returns. If you want a slice of the action, you’ll want to know the most important part about running a business, and that’s the tax information.
The amount of taxes you pay will depend on many factors such as the size of your business, your annual revenue, and whether you’re paying federal or provincial taxes, or both. Be that as it may, Edmonton has some of the lowest taxes in North America, so you’re not going to have to pay a lot.
The combined federal and provincial income tax rate for corporations, businesses, and companies in the Edmonton Metropolitan Region is 23%, 15% of which is the federal tax rate, and 8% of the provincial tax rate. This applies to businesses that are making more than half a million Canadian dollars annually in revenue.
If you’re running a smaller scale business and don’t make $500,000 in annual revenue, the tax rate decreases massively, with the combined federal and provincial income tax being around 11% in total.
Compared to the other provinces, Alberta has the lowest provincial taxes in all of Canada, which attracts more than a few small business owners.
But, Edmonton gets that much better for business owners regarding taxes and taxation due to something known as Business Improvement Areas (BIAs). As of writing this article, there are thirteen BIAs in Edmonton, and as long as you purchase a business in one of these areas, you can get a wide range of benefits, such as better taxes, grants from the government, and association with other businesses in the general business improvement area. If you want to learn more about BIAs and how they work, click here.
More Businesses for Sale in Alberta
Alberta is one of Canada’s biggest business scapes, and this means that the selection of businesses for sale is massive. Still, being cautious before making a move is advisable.
Sure, most people would like to become business owners, but most people who purchase businesses do so for the first time and have no prior entrepreneurial experience. Just because something looks and sounds attractive doesn’t necessarily mean that it is either a good investment or a profitable one in the long run.
The most popular industry for upstart entrepreneurs is the hospitality industry, which includes things such as bars, clubs, or restaurants. There is just something about these establishments that is alluring to people new to the business world, but most of them fail to realize that running one of these locations can be a nightmare.
Before you even start thinking about purchasing a business, you should take a step back and reconsider what you’re getting yourself into. Now, not every choice you make will be a bad one, but the best way to always make the right choice is to be pragmatic, meticulous, and business-orientated.
We are living in a digital day and age, which means the resources and information required to purchase a business, as well as the listings themselves, have never been as easy to get a hold of. With websites such as FindBusinesses4Sale, you can almost do the entire process without having to leave the comfort of your PC.
Through FindBusinesses4Sale, you can browse through a massive selection of businesses for sale in Edmonton across various industries, sizes, and types. Not only can you do so with ease, but you can also do it with the utmost precision.
FindBusinesses4Sale is well equipped with a range of metrics, filters, and options to help aspiring business owners find their next business, as well as people who are looking to put their business up for sale.
All in all, while finding and selling a business is easy with tools like FindBusinesses4Sale, the process isn’t as straightforward as most people think. There is no right way to find the right business, which isn’t very comforting to many people.
Making a series of bad decisions can not only ruin your newly acquired business but can land you in a world of debt.
While all of this might sound frightening at first, it’s not nearly as scary as you might think. As long as you pay attention to what you do, practice pragmatism and do everything with due diligence, you’re practically guaranteed to have a buzzing start with your brand new business purchased through FindBusinesses4Sale!