Buying an existing business can be an effective way to start your own, particularly if you need more experience in the industry or are strapped for cash. Buying a business has the potential to save you time and money compared with starting from scratch and will provide you with an established customer base, brand recognition, marketing materials, and more that can help you get started immediately without having to worry about some of the legwork yourself. Here are five advantages of buying a business over starting your own from scratch.
1) Buying a business is less risky than starting from scratch
If you’re looking to start your own company, there’s something important you should know: it’s riskier than ever. It takes years and lots of money before businesses become profitable, and even then, they often fail due to unforeseen market changes. And while those big shots might look like they have it all together, the truth is that they’re just winging it, sometimes barely making ends meet while juggling family life. The good news is that only some people want their own company. As an alternative to going out on your own, buying an established business can offer enormous advantages for entrepreneurs and investors: less risk for the buyer, instant customer base; new revenue streams; existing management in place; more significant potential for expansion or franchising, etc.
2) Buying a business can be cheaper
Buying a business can be cheaper than starting from scratch. Let’s say you want to open a restaurant, but you don’t want to waste time and money that it would take to build out the space. That could easily cost you £150,000 or more for rent and construction costs. Instead, you can buy an existing restaurant or another type of commercial property on the cheap that is suitable for your needs. For example, if you have just £10,000 saved up and want to start your own coffee shop instead of investing in an already established one, you’ll need access to inexpensive office space with at least 2 or 3 bathrooms to comply with city building codes—an upfront investment that could top £120,000 before renovations even begin.
3) Buying a business give you income right away
Buying a business is an excellent opportunity for people to enjoy financial benefits immediately. Plenty of businesses are under-priced, making it possible to buy them without having to commit as much time and money as if you were building your own company from the ground up. It is also possible that someone may be looking to sell their existing company due to illness or other personal reasons. You could have someone on board who has been operating the company in the owner’s absence, and they can provide knowledge, advice, and experience. If there’s yet to be an immediately available opportunity, then you should take the time needed for your purchase offer to be attractive enough for someone to accept it.
4) Already established customer base
One significant advantage is the potential customer base. If you buy an established business with a successful customer base, then you have one key ingredient to success already in place – the ability to attract customers. Of course, plenty of advantages come with running your own business; this one just happens to be number one. As the owner, you get the opportunity to be your own boss and choose the goals you want to strive for, something few people ever have. But another significant advantage when it comes to buying an existing company is that if you need more time or skill sets for everything, you can hire out what needs doing instead of starting from scratch and having much more on your plate.
5) Choosing to buy a small business means you have many options to choose from
It is time to buy if you are serious about starting your own small business. There are several advantages to purchasing an existing small business as opposed to opening up your own new venture. However, it is essential to remember that there will be significant financial and emotional investments if you choose this path. By examining the advantages and disadvantages of starting out fresh or getting experience from an existing enterprise, you should be able to decide for yourself which one is better suited for your needs.
Is buying a business right for you?
Some people enjoy the control they have over their company, while others like to go in a different direction. Buying an established company allows you to take charge and mold it into something your own while also having the opportunity to capitalize on other factors that were already in place. Buying an existing company is also typically less risky than starting from scratch and can save you valuable time.
Where can I find business opportunities?
Many people choose to purchase rather than start a company because they want the benefits of an already-established business. If you are one of those people, we recommend browsing an online directory of businesses for sale. These websites should help you find a business that would be suitable for you.
Final thoughts on buying an existing business for sale
As you can see from this article, there are many benefits to purchasing an existing business for sale rather than starting one from scratch. However, we do understand that buying a business is not for everyone, so if you feel like going into the world of business alone, you will need all the help you can get, so feel free to read our previous business articles in our news section this should help you understand the main factors to consider before starting your first business.