If you’re looking to buy a profitable business in Michigan, and don’t know where to start, you may be asking:
- What are the hot choices for the most return on investment (ROI)?
- What are their practical benefits?
- How do I find the right fit?
Well, the good news is there are a lot of choices worth the investment.
From liquor stores, to franchises, bars, and hair salons, let’s take a look at five businesses choices that fit the bill.
Business Choice 1: Liquor Stores
Owning a well-located, profitable, and well-run liquor store is a solid financial investment that can pay dividends for years to come.
Although limited by licensing, liquor stores offer an opportunity that’s hard to replicate.
Benefits include:
- They can’t be outsourced and don’t shut down during pandemics
- They are straight forward and easy to learn to operate quickly
- A thriving alcohol business market worth $6 billion in Michigan, according to data from the Michigan Liquor Control Commission
Business Choice 2: Franchises
It’s a no-brainer that starting from scratch is much more costly and time consuming.
Franchises are a good pick when looking for ROI.
With a success rate that falls at approximately 90 percent as compared to only about 15 percent for businesses that are started from the ground up, you will likely be happy with your investment.
When it comes to costs and contractual obligations, be cautious but optimistic, as the pros far outweigh the cons and could save time and money overall due to brand recognition, quicker funding, and built-in supports.
Business Choice 3: Bars
Liquor stores aren’t the only way to profit off alcohols sales. Buying a bar is likely to offer a high ROI.
Profit margins are high, especially on alcohol, and owners can expect to make between 200% and 400% on drink sales.
Business Choice 4: Hair Salons
Another opportunity to own a small business that has potential for positive cash flow is owning a hair salon.
Some reasons hair salons make great investments include:
- Minimal costs and opportunity to negotiate lease agreements
- Customers see salons as an essential service, and spend disposable income on service even when times are economically unstable
- Per seat models allow owners to rent space to stylists
- Manageable size and built-in relationships
Business Choice 5: Established Restaurants
It is estimated that 1 in 12 small businesses will shut down every year. The figures for restaurants are even more dire.
By taking over a pre-existing restaurant with a good track record, as with franchises, those numbers drop significantly.
Here’s why an established restaurant is worth a look:
- Built-in branding: Recognizable branding is a cost-saving measure that avoids taking on creative and advertising development from scratch
- Customer base ready to go: The value of loyal customers cannot be understated, and a pre-existing restaurant has the advantage of an instant customer base that can be relied on from the beginning
- Instant cash-flow: An established client base means a reliable cash flow
- A trained staff: It is likely that some existing staff members will come with an established restaurant, which saves on training and hiring obstacles
Michigan Business Broker Nadir Jiddou is Here to Help
Whether you choose to invest in an established restaurant, hair salon, franchise, or liquor store, the Michigan Business Broker can help you get started in one of these hot markets.
Having bought and sold businesses for more than 18 years in Michigan, Nadir Jiddou utilizes his contacts and experience to help his clients achieve their objectives quickly.
Call us at (248) 220-3274 or look at the business listings we currently have on hand to see what might be a fit for you.