Miami businesses for sale: What to look out for

Hello, this is Patrick Findaro here. I just wanted to talk a little bit about businesses for sale in Miami. We got a lot of questions about businesses for sale in Miami, South Florida, Fort Lauderdale. What to look out for, what businesses have a higher return, are more profitable, etc. I just wanted to give you a little information when you’re thinking about your business search in South Florida, and particularly in Miami.

Be mindful of Seasonality

Keep in mind that there is some major seasonality. September and October tend to be pretty slow months. You don’t have many summer tourists. You don’t have the winter tourists. That’s why it’s very important for Miami-based businesses to really map out these seasonalities. It is also important to understand from other business owners and business brokers what the seasonality is or like. This also accounts for your advisors and accountants.

Miami Business Rents are Twice as High

Also, rents in Miami Dade County for most virtual spaces tend to be twice as high. Over 100 percent as high as Broward County, where Fort Lauderdale is. That’s why, when you’re looking at commercial space in Miami or you’re looking at an existing business for sale, it’s really important to understand what the rent is on a monthly basis. What are the terms of the lease? And when you’re in the process of moving forward to buy that business or to start a franchise in that location, it’s really important to consult with an experienced real estate attorney. Just as many types of businesses, you don’t want to be paying more than 10 percent of what your revenues are in, additionally to your rent and other related rent expenses.

Location Depends on the Product or Service You Provide

What’s very important to understand in Miami, is your business more of an impulsive good? Is it a product like ice cream or certain types of restaurants that someone’s going to walk by and decide to stop in your settlement? Or is it more like a barbershop, or nail salon that people regularly go to, and they don’t need to be in the nicest street with the most pedestrian traffic? It’s more about being in the right zip code and being in a good plaza or a good location. But does it need to be that principal street that has all the foot traffic? That’s another thing to consider with businesses, especially in Florida and Miami, which tend to be high real estate costs. And depending on the type of franchise, you might not have to be in the best location. It’s more important to look at the demographics.

Business Opportunities in Miami: Look for Renewable Revenue

There’s a lot of opportunity in the healthcare space. However, the regulations are very tight. To get those permits and to accept Medicare patients, for example, it can take a lot more time talking to business owners in that space compared to other areas of the United States for a like business. We see a lot of opportunities and real estate-related businesses like property management and commercial cleaning. We like those types of businesses that have renewable revenue that you can count on the same client every month. And you can expand that portfolio business. That will also get you over the slow periods that a lot of business owners in the hospitality industry experience. Which are not limited to but include September and October.  A lot of different franchises and businesses are quite successful in South Florida, particularly in Miami. And we tend to see some of the highest margin businesses being in the service-related sectors such as real estate, property management, commercial cleaning, barbershops. Those also have the added benefit of having renewable revenue where you can count on it on an ongoing basis. And it’s not going to be so dependent on the weather or other factors that are out of your control.