If you’re a budding entrepreneur, starting your own business is probably at the forefront of your mind, but have you ever thought about buying an existing business rather than starting one from scratch? If not, you might want to take a look at the benefits because although it is definitely not for everyone, there are many advantages to buying an up and running business that might interest you…
Securing finance is simpler
Perhaps, one of the biggest draws of buying an existing business is the fact that providing the business is in good shape, it is typically a lot easier to secure finance for a going concern than it is a brand new startup whose success is an unknown. Banks are increasingly cautious right now, so this could be your best way into life as a business owner at present.
When you start a new business from scratch, it is normally the case that your new company will not start generating an income for a while. In fact, it is not unusual for businesses to only start generating income after three years or more in business. This can be frustrating, expensive, and often prohibitive to the ongoing running of the company, which is why so many businesses fold so fast.
When you buy an existing business, however, you do not have to go through the long process of building up a profile and attracting your first customers which means you can start generating an income from day one. Providing you use a good contract lawyer like those at bopprelawfirm.com, to avoid any legal issues, this leaves you free to focus on growth rather than just staying afloat. This is a huge advantage that cannot be understated.
Your brand is already established
Establishing a strong brand identity is one of the most difficult things about starting a business. You have to do lots of market research, develop and design logos, brand mission statements, content in a specific voice, and the list goes on. This can take considerable time and money, but if you can find an existing business that has already done this successfully, you’ll be one step ahead.
An existing customer base
Existing businesses have pre-existing customers, which means that you don’t have to worry about building a following from scratch, Of course, when you buy the business, you will still need to put the effort in to keep those customers onboard and grow your customer base even further, but at least you will know where to start and you’ll have a pool of people on hand to ask about any improvements you could make to your company so that it is more attractive to more people.
You’ll have contacts
In business, it’s often who you know rather than what you know that can make or break you, so it’s good to know that when you buy an existing business, you will typically get access to suppliers, marketing people, businesses in complementary niches, etc., who can be a real asset to you when it comes to growing your business and connecting with the right people.
Basically, when you choose to buy an existing business rather than start a new one from scratch you get to hit the ground running by bypassing many of the teething problems startups encounter.