bankrupt companies for sale
Some people have been asking me this question a lot lately do you think its a good idea to purchase a bankrupt company for sale?? Well, there are a million point of views to this question with many different proofs behind it as well. My answer is always first of all find out the reason why it went bankrupt in the first place, there is a reason behind everything and when you get to that reason start making your assumptions and conclusions. You know how many scenarios apply to such a business
Scenario #1 : the business could have went bankrupt because there was no care.
Scenario #2: the location wasn’t right for that type of business
Scenario #3: the owner just didn’t have enough money to continue paying bills and was too behind on his loans.
Scenario #4: the number of employees was too small to run a business
Scenario #5: the competition was too high
Scenario #6 : the marketing strategies weren’t enough were incorrect for this type of business
Scenario #7: the business idea itself wasn’t good enough even if it was too original
Scenario #8: your demographic analysis wasn’t studied very well.
For some of these scenarios, there could be some kind of solution but for others there is no need to try, a bankrupt company is usually sold at a very low market price much lower than the regular market price, because the owner wants to liquidate all of the assets and the space as quick as possible either to paying past due bills or finishing paying salaries to employees or ward of distributors because they have no money to pay anyways for the items they have order or usually in take during a certain period of time.
In my opinion stay away from scenario #5 and #2, because they will be very hard to fix you must be extremely talented in order to beat the competition and very smart to attract people to come to location that is very far or uneasy to get to. For the other Scenarios there could be solutions, if its the business idea you could always change based on the demographics analysis that you will re perform anyways, if its the marketing strategy then you could change that as well, if the number of employees you could raise salaries a bit making the job seem more attractive. All the problems for bankrupt companies for sale could be fixed expect a few that we discussed because they could still be solved.
