5 facts to remember when considering buying a small to mid-sized business in Texas

Texas, named as one of America's best places to do and launch business, is backed with great supporting reasons why companies and people flock here.

"There is something here for everyone"... what is it that pulls people here?

How is it that there can be such a myriad of collective reasons attracting business and people to one particular state, when there are 49 others from which to choose. What is it about Texas, which makes it so special? Let us count the ways...

Build It and They Will Come

After two decades in M&A, there have been many, who have asked me why I promote small business ownership. My reasons are several. They range from the love of #entrepreneurship to the love of my home state, Texas. According to the Small Business Administration, small businesses make up 99.9% of all business in the country. In Texas alone, Residential Real Estate Sales and Commercial Real Estate Sales for 2019 are continuing to positively increase. In addition, several Fortune 500 Companies valued the state's many benefits and made their corporate headquarters home here.

Small Business Today

The Small Business Sector is a multi-trillion dollar industry according to the #USSmallBusinessAdministration. Since 2009, a great surge in land development made its comeback. Economic growth due to higher investment trends in commercial building and residential housing markets, inbound population increases nationally and internationally, attractive state and local governmental tax incentives, helped to spur this sector, especially in Texas.

Developing in Texas

Year over year, #Texas reclaims its top position for business ranking across the nation. Additionally, Texas achieved the highest scores in economy and infrastructure. It proudly boasts the 10th largest economy in the world based on GDP, holding this title for 17 consecutive years. Exports from Texas reach over $315 billion yearly. Media conglomerates such as #Forbes, #CNBC, #AmericanCEOs, #SiteSelectionMagazine agree that Texas is best for overall selection of place to live and do business.

A Powerhouse for Business

The Lone Star State acquired 49 out of the 500 #Fortune500Companies headquarters. Goliaths such as JP Morgan & Chase, Toyota, Liberty Mutual, AT&T, American and Southwest Airlines, SYSCO, Siemens, Kimberly Clark, Tenet Health, Waste Management, Whole Foods, and 2.4 million more small businesses call Texas home out of the 28.8 million small businesses across the U.S. These game changers have given back to the area and have made it bloom even brighter. The most popular reason companies relocate to Texas is due to state and local business tax benefits, a bountiful educated workforce, ample land space, favorable costs of living for families and individuals, and friendly Texans.

Businesses with the Biggest Boom for Your Buck

15 of the most profitable small businesses to consider investing in are:

1. Financial Services

2. Legal Services

3. Real Estate & Leasing

4. Medical Care

5. Copywriting

6. Dental Practices

7. Personal Fitness Training & Centers

8. Janitorial Service Companies

9. Funeral Homes

10. Warehouse & Storage

11. Doctor Offices

12. Food Trucks

13. Gardening & Landscaping

14. Educational Services

15. Event & Party Services

Truly, I tell inquiring minds, it all boils down to 5 simple ingredients: Price, Profitability, Placement, Scarcity/Uniqueness, and Timing. All else is just whipped cream and cherries on top. It is also important to convey the need for brain, brawn, and elbow grease when times require one to go that extra mile to make the sale. Keeping #TheAmericanDream a reality does exist and it takes strength and nurturing, like a great marriage.

Blog Post by Chris Jones with EMergers & Acquisitions Private Equity in Plano, Texas