6 Reasons Why to Buy an Existing BusinessBuying an existing business is always easier and safer than starting one from scratch.
Statistically a large number of start-up businesses will fail, with those surviving often being sold to have their new owners make the real gains. So let the hardened entrepreneurs take the risk, develop the market, and find out what works and what doesn't.
Even if you have a great idea you want to run with, buying an existing business may offer you the right platform to launch your product or service from, thereby saving you considerable time and money in getting to market.
Buying a business need not be conventional - it maybe just the customer base, cashflow, or resources you need.
As well a being proven business with less risk, you are likley to save time and money. There are countless benefits from buying an existing business.
Why buying an existing business is a good idea:
1. An existing customer base - these are the people or businesses that already do business with you. No customers, no business!
2. Cashflow day one - this business is up and operating. This means cashflow from day one that helps you pay staff, suppliers and yourself. And secure a loan.
3. Accepted products and/or services. They have already been developed and accepted into the market place. These are what your customers will be paying you for.
4. Existing employees - experienced and skilled staff who understand the business and it's customers, most valuable to any going concern.
5. Operating Systems - these are key in any business activity. The current systems and business model is how the business operates, what keeps the customers coming and the cash flowing? This ties everything together. It's your business formula developed by the previous owners; it may be perfect, or it could be in need of major changes.
6. History. The previous owner has operated this business and will be able to show you it's financial records, it's cashflow, sales and expenses. All this lessens the risk to you and your bankers, showing the companies performance and providing you with a platform on which to build.
Before starting out decide what you want, what your objectives are, and understand your strengths and weaknesses. Plan the process. Buying an existing business is a great way to get started, but look at the many options before you decide on buying any business that you feel best suits you.
Buying a business is a big step, but can be hugely rewarding and a great investment in your future.
And always get professional help when buying a business.
By Richard O'Brien - nzbizbuysell
Share this article:
- Why buying a business is a great investment
- The 7 Steps to Buying a Business
- Find a job or buy a business
- Top tips when buying a business
- Why you should be your own boss
- 5 things that keep business owners up at night
- Choice chance and change
- What makes a successful small business owner
- Be your own boss
- Owning a business
- Retail business, but not as we know it
- Mistakes to avoid when buying a business
- How to measure business success
- Do I need an Accountant?
- Before buying a trucking business
- Finding the right franchise for sale opportunity
- Better small business success
- Hotels for sale and buying one
- Work from home in a home based business
- New Zealand business migration business visas
- Business visas - buying a New Zealand business
- Researching franchise opportunities
- Why buy a franchise business opportunity
- 10 things to know before you buy a business
- Buying a hotel or motel
- Buying a shop or retail business
- Buying a cafe or restaurant
- About buying a service business
- About buying a retail business
- About buying a distribution business
- About buying a manufacturing business
- Why now is good for buying a business
- Buying an existing business
- Finding the right business to buy