Are you thinking of buying a business? This comprehensive guide looks at the benefits and risks associated with business purchases, to help you make an informed decision. Whether you’re new to business ownership or are simply expanding your portfolio, it’s important to weigh up all the pros and cons before taking the plunge. So, what are you waiting for? Read on to find out more!
When you’re considering launching a business, you may have thought about going the startup route or acquiring an existing business. Both have their pros and cons, so it’s important to evaluate which option is best for you and your situation. Below, we’ve outlined some key considerations for starting vs buying a business.
1. You’re in control of the business’ vision, culture, and values.
2. You have the potential to create something unique.
3. You can be profitable quickly if you have a solid business plan and execution strategy.
1. It takes a lot of time, energy, and money to get a business off the ground – and there’s no guarantee of success.
2. You wear many hats in a startup – from accountant to janitor – which can be overwhelming.
3. You may have difficulty securing funding or attracting customers without a proven track record.
1. An existing customer base and revenue stream – meaning less work on the marketing front.
2. Much of the heavy lifting has been done in terms of setting up inventory, staffing, etc. – so you can hit the ground running.
3. You can learn from the previous owner about what works and doesn’t work with the business.
1. It can be expensive to buy an established business – sometimes prohibitively so.
2. The current owner may not be willing to provide extensive training or support after the sale.
3. The business may come with baggage in terms of reputation or legal issues.
There are many reasons why buying an existing business can be a great option for those looking to become small business owners. For one, you’ll have an established customer base, which can help you hit the ground running and start generating revenue right away. Additionally, you’ll likely have less paperwork and red tape to deal with compared to starting a new business from scratch. And last but not least, you can benefit from the expertise of the previous owner (assuming they’re willing to stick around for a while).
“A million companies have the latest and greatest thing you need to buy to make your business better”-Brian Will
If you’re on the fence about whether to start a new business or buy an existing one, consider the following benefits of the latter option: