6 Benefits of Buying a Business Under Management

buying a business under management

There are many benefits to buying a business, however, buying a business under management opens up another realm of possibilities for an enthusiastic buyer. Buying a business under management can mitigate many of the risks associated with buying a new business, providing a stable platform for growth and profits.

It is important to conduct your due diligence and consider what is involved in buying a business under management. There are many factors that contribute to how that business is run and can vary greatly from industry to industry.

At Bsale, we list businesses that are both owner-operated and under management, meaning you’ve got the ability to choose the correct business structure for you. But what are the benefits of buying a business under management? We spoke with Jad Naddaf from Link Business Melbourne to find out more. 

 

Balance and Lifestyle

 

Buying a business under management allows the person to make more money while freeing up their time. It gives you a lifestyle work balance that is great - you could be in Bali having fun, while making money home in Melbourne. With any business purchase, it’s important to understand the implications of how this will affect your lifestyle. This is a great way to introduce more flexibility into your working week and beyond. 

 

New industry exposure

 

Buying a business under management is also good for people in a different field than that of the business. For example, a doctor buying a newsagency - there really isn’t any reason why you can’t run a successful business in a new field or industry under this structure.

Furthermore, it makes a good return on investment if the business is profitable.

 

Franchising still a possibility

 

Utilising this structure under a franchise system is even more beneficial as the systems are all in place already, which makes a big difference. You are buying into a secured and guaranteed business which means overtime your business should have all things in place for success.

 

Supplement income

 

Although your new business will require your time and input, a lot of business owners choose this structure so they can supplement their existing income. If the structure is right it should free you up to continue with your existing job or business role. 

 

Time to learn

 

Operating a business under management allows you the time and exposure to allowing the experts to show you how to run the business as well as possible while you learn the ropes. This essentially takes the pressure off you to jump in straight away and perform to the same standard it was running previously.

 

Less disruption to customers

 

As we know, customers are loyal and with any small business, they tend to be very invested in the people behind the business. Purchasing a business under management means you’re less likely to cause disruption to your existing customers and they continue to experience business as usual and see familiar faces. 

 

So how do you find a business to purchase that would suit being bought and operated under management? We suggest approaching a business broker who are professionals in this field with plenty of industry experience. Jad from Link Business Melbourne would be more than willing to answer any questions you may have.

 

Originally published July 2020. Updated December 2023.

Tags: buying small business buying a business under management

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