What Is the Cost of Buying a Business in Florida 2024?
Considering having a business in Florida, but you don’t know how? Read this blog to know all the costs of buying a business in Florida!
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Florida is a state that has been attracting businesses for decades, with its favorable tax policies, business-friendly environment, and highly skilled workforce. According to recent statistics, Florida’s economy is among the fastest-growing in the United States, with a GDP of over $1 trillion. Moreover, the state is home to a diverse range of industries, including tourism, healthcare, technology, and manufacturing, which have continued to drive its economic growth. As such, it is no surprise that many entrepreneurs and investors are interested in buying businesses there. However, the process of buying a business in Florida can be complex, with various factors that can impact the cost and ultimately the success of the acquisition.
For instance, the purchase price of a business in Florida can be influenced by factors such as the size and location of the business, the industry in which it operates, and the company’s financial performance.
Buying a Business in Florida
Furthermore, while the COVID-19 pandemic impacted businesses across the world, the long-term effects on the cost of buying a business in Florida remained unclear. While some industries saw significant declines, others saw an increase in demand and revenue. For example, industries such as e-commerce, healthcare, and logistics experienced growth, while sectors such as hospitality and tourism were hit hard.
The cost of buying a business in Florida also depends on the financing options available. Traditional options such as bank loans, private equity, and venture capital may be challenging to secure, depending on the size of the business and the industry in which it operates. However, alternative financing options such as seller financing, crowdfunding, and asset-based lending may provide additional opportunities to fund the acquisition.
Moreover, the legal and regulatory environment in Florida can also impact the cost of buying a business. As such, it is essential to have a strong understanding of the state’s laws and regulations, including taxes, licensing requirements, and environmental regulations.
Let’s have a look at some data:
| Industry | Number of Listings | Average Listing Price | Average Revenue |
|---|---|---|---|
| Restaurants | 1019 | $473,830 | $790,825 |
| Construction | 537 | $1,490,524 | $2,464,857 |
| Beauty/Personal Care | 273 | $207,018 | $304,651 |
| Lawn/Landscaping | 214 | $520,536 | $662,731 |
| Automotive | 209 | $924,304 | $1,052,150 |
| Medical Related | 150 | $885,638 | $580,944 |
| Liquor Related | 131 | $905,298 | $910,917 |
| Distribution | 102 | $1,928,111 | $2,885,301 |
| Retail Miscellaneous | 100 | $614,670 | $834,713 |
| Real Property Related | 99 | $2,207,222 | $317,562 |
| Manufacturing | 92 | $1,321,293 | $1,686,757 |
| Cleaning/Clothing | 89 | $377,624 | $335,162 |
| Pool & Spa Business | 86 | $662,583 | $774,427 |
| Cleaning | 82 | $309,626 | $291,764 |
| Food Business Retail | 76 | $430,721 | $544,801 |
| Animals/Pets | 74 | $497,357 | $547,288 |
| Business Services | 70 | $531,475 | $572,697 |
| Real Estate Related | 69 | $492,719 | $556,867 |
| Fitness | 68 | $383,828 | 350,006 |
| Internet Related | 66 | $1,100,742 | $1,217,085 |
| Marine Related | 64 | $1,097,375 | $1,321,493 |
| Clothing | 61 | $758,367 | $754,482 |
| Transportation | 60 | $1,619,833 | $2,140,384 |
| Rental Business | 44 | $715,314 | $386,748 |
| Ice Cream/Yogurt/Ice | 42 | $223,554 | $257,390 |
| Convenience Stores | 38 | $314,392 | $532,165 |
| Recreation | 35 | $395,457 | $309,618 |
| Flower Related | 35 | $404,486 | $513,211 |
| Industry | Number of Listings | Average Listing Price | Average Revenue |
|---|---|---|---|
| Furniture Retail | 35 | $597,721 | $1,131,931 |
| Advertising | 34 | $432,156 | $443,470 |
| Child Care | 34 | $655,147 | $636,712 |
| Pack/Ship/Postal | 32 | $216,741 | $293,656 |
| Educational/School | 32 | $1,151,938 | $647,791 |
| Wholesale | 29 | $2,144,994 | $3,082,154 |
| Interior Design/Decor | 29 | $870,862 | $1,176,266 |
| Routes | 28 | $572,554 | $980,440 |
| Accounting | 28 | $391,036 | $560,819 |
| Sports Related | 27 | $1,544,585 | $1,912,920 |
| Insurance | 26 | $734,125 | $363,195 |
| Environmental Related | 24 | $1,746,000 | $1,535,482 |
| Printing/Typesetting | 24 | $483,542 | $613,610 |
| Financial Related | 20 | $1,164,500 | $3,371,939 |
| Engineering | 20 | $1,257,170 | $1,454,043 |
| Gas Station | 18 | $391,667 | $1,249,442 |
| New Franchises | 18 | $238,833 | $340,244 |
| Jewelry | 18 | $3,567,111 | $454,487 |
| Electronics/Computer | 17 | $1,665,647 | $2,598,464 |
| Flooring | 16 | $827,313 | $1,787,417 |
| Art | 15 | $496,320 | $737,783 |
| Tailoring | 14 | $202,714 | $87,172 |
| Equipment S & S | 14 | $765,071 | $873,482 |
| Appliances | 14 | $814,000 | $1,809,886 |
| Dental Related | 13 | $1,071,385 | $921,359 |
| Cards/Gifts/Books | 13 | $603,769 | $832,711 |
| Agricultural | 13 | $3,051,154 | $1,057,605 |
| Telephone Related | 11 | $853,255 | $1,127,304 |
| Moving | 11 | $809,909 | $1,179,487 |
| Pest Control | 10 | $574,400 | $746,539 |
Overview of the Top 5 Industries
1. The Restaurant Industry
The Restaurant industry in Florida is one of the largest in the United States, with a significant contribution to the states economy. In 2020, the industry generated over $50 billion in revenue, making it the fourth-largest restaurant market in the country, according to the National Restaurant Association. Moreover, the industry employs over 1.4 million people in Florida, which accounts for almost 12% of the state’s workforce.
Florida is known for its diverse culinary scene, offering a wide range of dining options that reflect the region’s cultural influences. The state is home to a variety of cuisines, from classic Southern comfort food to Caribbean and Latin American dishes. Many restaurants specialize in seafood, given the state’s abundant natural resources, serving up fresh catches from the Atlantic Ocean and the Gulf of Mexico. According to the Florida Department of Agriculture and Consumer Services, the state’s Commercial Fishing industry generates over $2.3 billion in economic impact and supports more than 14,000 jobs.
The COVID-19 pandemic has had a significant impact on the Restaurant industry in Florida, as it has across the globe. During the early months of the pandemic, many restaurants were forced to close their doors temporarily, resulting in widespread job losses and revenue declines. However, the industry has demonstrated remarkable resilience, adapting to new safety guidelines and regulations while finding innovative ways to continue serving customers. According to the National Restaurant Association, 23% of Florida’s restaurants have permanently closed since the beginning of the pandemic.
2. The Construction Industry
The Construction industry in Florida is one of the largest in the United States, employing a significant portion of the state’s workforce and contributing billions of dollars to the economy. In 2020, the industry employed over 585,000 workers in the state, according to the Associated Builders and Contractors (ABC). Additionally, the industry generated over $40 billion in economic impact, making it a crucial part of Florida’s economy.
Florida’s Construction industry is diverse with various sectors, including residential, commercial, and infrastructure construction. The state’s strong population growth and tourism industry have driven significant demand for new construction, particularly in the residential sector. In 2020, the state issued over 150,000 building permits, according to the Florida Department of Business and Professional Regulation (OPPAGA).
Infrastructure construction is also an essential part of the construction industry in Florida. The state’s ports, airports, highways, and public transit systems require ongoing maintenance and improvement to accommodate the needs of the growing population and economy. The Florida Department of Transportation (FDOT) estimates that the state will need over $70 billion in transportation infrastructure investments over the next 20 years to keep pace with demand.
The COVID-19 pandemic has had a significant impact on the Construction industry in Florida, as it has across the globe. During the early months of the pandemic, many construction projects were put on hold or delayed due to safety concerns and supply chain disruptions. However, the industry has rebounded quickly, with many projects resuming as safety protocols were put in place.
The Construction industry in Florida also faces challenges related to labor shortages and workforce development. As demand for construction workers increases, there is a shortage of skilled workers to fill positions, particularly in areas such as plumbing, electrical, and mechanical trades. The industry is taking steps to address this issue by investing in apprenticeship programs and other training initiatives.
3. The Personal Care/Beauty Industry
The Beauty and Personal Care industry in Florida is a thriving sector, offering a wide range of products and services to meet the diverse needs of its consumers. In 2021, the industry was valued at over $9 billion, according to IBISWorld, and is expected to continue to grow in the coming years.
The Beauty and Personal Care industry in Florida is diverse, encompassing various segments, including hair care, skincare, makeup, and fragrance. The state is home to numerous well-known beauty brands, including hair care giant Toppik and skincare brand Rodan + Fields. In addition to established brands, Florida is also home to a vibrant community of independent beauty entrepreneurs, many of whom have gained a significant following on social media platforms such as Instagram and TikTok.
The Beauty and Personal Care industry in Florida also encompasses a wide range of service-based businesses, including salons, spas, and wellness centers. Florida’s tropical climate and beaches make it a popular destination for tourists seeking beauty and wellness services. According to the Florida Department of Economic Opportunity, the Personal Care Services industry employed over 135,000 people in 2020.
The COVID-19 pandemic has had a significant impact on the Beauty and Personal Care industry in Florida, particularly on service-based businesses. During the early months of the pandemic, many salons and spas were forced to close temporarily, resulting in widespread job losses and revenue declines. However, the industry has demonstrated remarkable resilience, adapting to new safety guidelines and regulations while finding innovative ways to continue serving customers.
The Beauty and Personal Care industry in Florida also faces challenges related to sustainability and inclusivity. Consumers are increasingly looking for products and services that align with their values, such as environmentally friendly and cruelty-free products. Additionally, there is a growing demand for products and services that cater to a more diverse range of skin tones and hair types.
4. The Lawn/Landscaping Industry
The Lawn and Landscaping industry in Florida is a thriving sector, offering a wide range of services to homeowners, businesses, and municipalities. In 2021, the industry was valued at over $10 billion, according to IBISWorld, and is expected to continue to grow in the coming years.
Florida’s warm climate and abundant rainfall create an ideal environment for lawn and landscape maintenance, making the industry a critical part of the state’s economy. The industry encompasses a range of services, including lawn mowing, landscaping design and installation, tree care, and irrigation. According to the Florida Department of Economic Opportunity, the landscaping services industry employed over 86,000 people in 2020.
The Lawn and Landscaping industry in Florida is diverse, with businesses ranging from small, locally owned operations to large, national franchises. Many of Florida’s landscaping businesses are family owned, with multi-generational ownership and deep roots in the local community. Additionally, Florida is home to numerous professional organizations, such as the Florida Nursery, Growers, and Landscape Association (FNGLA), that provide training and resources to landscapers and horticulturists.
The COVID-19 pandemic had had a mixed impact on the Lawn and Landscaping industry in Florida. While many businesses experienced a decline in revenue due to decreased demand, others saw an increase in demand as more people spent time at home and invested in their outdoor spaces. Overall, the industry has demonstrated resilience, adapting to new safety guidelines and regulations while finding innovative ways to continue serving customers.
The Lawn and Landscaping industry in Florida also faces challenges related to environmental sustainability and water conservation. Given the state’s significant water resources, there is a growing awareness of the need to conserve water and reduce the use of fertilizers and pesticides. Additionally, the industry is working to adopt more sustainable practices, such as using native plants and implementing integrated pest management strategies.
5. The Automotive Industry
The Automotive industry in Florida is a significant contributor to the state’s economy, with a diverse range of businesses, including automobile dealerships, repair shops, and parts suppliers. In 2021, the industry was valued at over $52 billion, according to IBISWorld, and employed over 200,000 workers in the state, according to the Florida Department of Economic Opportunity.
Florida’s Automotive industry is diverse, with businesses ranging from large dealerships to independent repair shops. The state’s population growth and tourism industry have driven significant demand for new and used vehicles, making automobile sales and leasing a significant part of the industry. Additionally, many Floridians rely on their vehicles to navigate the state’s vast geography, from the busy streets of Miami to the rural highways of North Florida.
In addition to automobile sales and leasing, the Automotive industry in Florida encompasses a range of services, including vehicle repair and maintenance, bodywork, and customization. Florida is also home to numerous professional organizations, such as the Florida Automobile Dealers Association and the Automotive Service Association of Florida, that provide training and resources to professionals in the industry.
The COVID-19 pandemic has had a significant impact on the Automotive industry in Florida, particularly on new vehicle sales. During the early months of the pandemic, many dealerships were forced to close temporarily, resulting in widespread job losses and revenue declines. However, the industry has demonstrated resilience, adapting to new safety guidelines and regulations while finding innovative ways to continue serving customers.
The Automotive industry in Florida also faces challenges related to environmental sustainability and technological innovation. As consumer demand for electric and hybrid vehicles increases, the industry is working to adopt more sustainable practices and technologies. Additionally, as new technologies such as autonomous vehicles and connected cars continue to develop, the industry is evolving to meet the changing needs of its customers.
Conclusion
The cost of buying a business in Florida in 2023 depends on various factors such as the size and location of the business, the industry in which it operates, the company’s financial performance, and the financing options available. The COVID-19 pandemic has also impacted the cost of buying a business in Florida, but the long-term effects remain unclear. Florida has a favorable tax environment and is home to a diverse range of industries, including tourism, healthcare, technology, and manufacturing.
The top 5 industries in Florida are Restaurants, Construction, Beauty/Personal Care, Lawn/Landscaping, and Automotive. Each industry faces its own challenges and opportunities, such as labor shortages and workforce development in the Construction industry, sustainability and inclusivity in the beauty and Personal Care industry, and environmental sustainability in the Lawn and Landscaping industry.
If you are interested in franchising in Florida, make sure to check out our website Vetted Biz for more franchise opportunities!
