Six Reasons Why It May Be More Beneficial To Buy An Existing Business As Opposed To Starting A New One
Suppose you want to get into business for yourself: Should you buy an existing business or start a new one? There is no right answer suitable for all; it depends on each individual's circumstances whether it's more beneficial to buy an existing business or start your own.
Take a look at these famous people....W. Clement Stone, Bill Gates, and Michael Dell; they were able to fill needs that nobody else could. And then we have S. B. Fuller, who could not have bought an existing business because he had
Most small business owners would probably agree it's smarter to buy an existing business if you can. The reasoning behind this is simply that your dream can become a reality much faster and with fewer risks than if you were to start from scratch. You can, of course, start a small business with very little capital, but how long will you toil before making it big and paying out what you would like to earn? You also have to consider that the risk of failure is much higher when starting a new enterprise than buying one that is already up and running.
Let's take a look at a few advantages that purchasing an existing business may have, these assuming you have enough funds to either start a business or buy one, and that the business you're interested in is for sale. Here are six reasons why you would probably be smart to purchase it:
1. You may possibly get it for an unbelievable bargain. A business owner's personal misfortune can sometimes force him/her to accept less than the business is worth in order to expedite the sell. Health, personal, and domestic problems are such examples.
2. You eliminate start-up problems, which can be costly and unpredictable. You save the time and trouble of buying equipment and supplies. Operating methods are proven. Customers are already buying from the company.
3. Uncertainties are minimized. If you start a new busiiness, you can't always be sure about the best location for it, appropriate-sized building, correct way to advertise, best prices, and so on. An established proprietor already knows these answers.
4. The previous proprietor can give you valuable information about demand, competitors, annual sales, suppliers, seasonal fluctuations, and other such variables.
5. You get a time-tested list of suppliers and service people. This benefit alone can save you a lot of time sorting through ill-advised choices of companies to do your business with.
6. Often times you have trained employees who are willing to stay on and help you learn the business. This is probably one of the most beneficial aspects of buying an existing business.
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