Author Topic: BUYING A BUSINESS  (Read 860 times)

TammyL

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BUYING A BUSINESS
« on: July 13, 2016, 08:12:35 AM »
HAS ANYONE EVER BOUGHT ANOTHER BILLING SERVICE. I HAD A BILLING SERVICE REACH OUT TO ME THROUGH MY WEBSITE STATING THEY WANTED TO RETIRE AND SPEND MORE TIME WITH THERE KID'S AND SINCE I WAS LOCAL SHE THOUGHT I WOULD BE A GOOD FIT FOR THE 2 CONTRACTS SHEHAS PLUS A FEW SMALLS ONE'S THAT SHE WAS JUST GOING TO THROW IN THERE.

PMRNC

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Re: BUYING A BUSINESS
« Reply #1 on: July 13, 2016, 09:22:00 AM »
I have mixed feelings about this.. MY own opinion is I wouldn't pay for clients this way. There are too many variables to consider, the most important one being the existing contracts. Years ago I was overwhelmed and burnt out so I GAVE my existing clients to a billing company in my area. I sat down and talked with each client and made sure they were on board. If you already have clients it's probably MORE beneficial to pay the billing company a referral fee and obtain/negotiate the current clients they have.

Again, just my opinion but I wouldn't purchase an existing billing company.
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Michele

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Re: BUYING A BUSINESS
« Reply #2 on: July 13, 2016, 01:45:32 PM »
HAS ANYONE EVER BOUGHT ANOTHER BILLING SERVICE. I HAD A BILLING SERVICE REACH OUT TO ME THROUGH MY WEBSITE STATING THEY WANTED TO RETIRE AND SPEND MORE TIME WITH THERE KID'S AND SINCE I WAS LOCAL SHE THOUGHT I WOULD BE A GOOD FIT FOR THE 2 CONTRACTS SHEHAS PLUS A FEW SMALLS ONE'S THAT SHE WAS JUST GOING TO THROW IN THERE.

For me it would totally depend on what she expected.  The truth is you are already in business with your own name so you really are only "buying" her clients.  I would see what she is looking to get, what the gross income from the clients currently is, and if she has or will be speaking to the clients about this as well.  You certainly don't want to buy her business only to find out the clients had no idea and are not on board with the change.  But it may be a good opportunity to pick up some accounts if you need/want them.  I would at least see what she has in mind. 
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williamportor

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Re: BUYING A BUSINESS
« Reply #3 on: July 15, 2016, 05:06:20 AM »
JMHO- Unless the purchase price for this business is very small, I wouldn't bother with it. If you spent a few hours a day going door to door with your marketing material, or a few hundred dollars a month on some well designed direct mail pieces, you could acquire the same amount of business yourself in a short time. Compare the cost of these marketing efforts vs the price to buy this business, and you find it's normally not worth it. 
« Last Edit: July 15, 2016, 05:09:59 AM by williamportor »