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Should you buy a bankrupt company?

If 85% of all businesses fail within the first five year, there may be a lot of opportunities left on the table. Many business start-ups have a good idea for a product of service; unfortunately they lack the ” foundation  building process” and a good idea seldom can survive on it’s own merit.

Many small businesses just silently close their doors without declaring bankruptcy. Sometimes, just the business declares bankruptcy, and sometimes the business founder declares personal bankruptcy because of the business failure.

The good news is that the idea for that business is still alive and well, and with proper nurturing, may become a great business.

The term “foundation building process” encompasses a lot of parts, including, marketing, finances and management. Lack of education is, in my opinion, the single biggest reason for a business failure; second is the proper implementation of a workable business plan.

Bankruptcies can be found in the county records along with the owners information. Other methods of finding  owners who just close down is to run an add in the newspaper saying you are interested in buying companies that have closed recently or may be in the process of closing. There are many other ways of obtaining this type of information.

Armed with the information, a meeting with the owner to discuss the original business concept, will help you determine if you wish to pursue a purchase or business arrangement.

I have just brushed this topic, there is a lot more to it, if you are interested, please e-mail me at nick@nickpetra.com and put bankrupt company in the subject line.

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A man is not defeated by his opponents but by himself.

Jan Christiaan Smuts

Have a great day!

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