There is an assumption that the market is ‘slower’ in winter months. Potential buyers often delay researching businesses for sale until springtime. However, there are opportunities available in winter which buyers should take advantage of;
There is a lack of buying activity during winter. With less buyers on the market, demand is at a lull. Buyers should perceive this as a positive rather than a negative; fewer buyers means that there are less people making offers, giving them an edge against the competition.
Fewer enquiries also means that brokers and sellers can spend more time with buyers. There is more of a chance to ask additional questions, or visit the site on more occasions; the business owner may not have had time for this in busier summer peak periods.
Being able to inspect and undertake due diligence during colder months, allows buyers to gain a full understanding of how operations will be during slower periods…not just a depiction of it from the seller.
For example, should a buyer be interested in a beach side café, seeing how operations are conducted during winter will allow them toget a complete picture of the quieter times (not just those of peak season sales). Then when the next winter comes around, they have had time to create and implement tactics to increase sales during the lull periods (perhaps incentive deals, changing the outside seating to be more appealing etc).
Winter means slower periods across many sectors and industries, not just the business/property world. This means there is potential to secure great deals, to save on initial take over costs.
For instance, contractors typically have less business throughout the colder months, which would mean the ability to negotiate discounted labour hire fees. Retail and supplies stores have sales at this time of year. If a business being purchased needs to be refurbished or fitted out, the opportunity to get a great deal in these areas could benefit overall purchasing costs.
If you are interested in buying a business, take a look at our current listings or get in touch with me today (1300 466 455).