Why African-American Women Entrepreneurs Have Found Success Through Buying Existing Companies

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Although black women are the largest demographic of women starting businesses, many are bootstrapping and struggling for profit. As a result, many black women entrepreneurs have found greater success through buying and scaling existing companies.

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Several factors can impact the sales price of a business. For example, a company generating high-profit levels is generally worth more than a business barely breaking even. Likewise, a larger, more established business is typically worth more than a smaller, newer one. When Covington acquired the company, she aimed to grow it into something new to give her family more passive and generational wealth. Today, Bella Virtu Organics has tripled its profit by increasing units per order utilizing email marketing and search engine optimization tactics. As someone already experienced in marketing, I thought these were tactics easy to deploy and optimize to increase sales volume.

One option that can be helpful for anyone who is considering buying a business is seller financing. In this case, the company's seller agrees to accept payments over time rather than requiring the full purchase price upfront. This can make it easier for the buyer to afford the business upfront.

 

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