5 Reasons to Purchase an Existing Business Rather Than Starting a New One
Author: Miss Victoria Collins
Owning and operating an existing business is becoming an ever-growing trend with aspiring entrepreneurs choosing to buy a previously owned pursuit rather than starting anew. Although buying an existing business usually requires a more upfront cost, it also presents less risk than starting from scratch. Whilst there are benefits and drawbacks to both choices, here are 5 reasons why Intelligent recommend purchasing an already established business.
Existing PresenceA new buyer wishing to purchase an established business would benefit from taking over a company with foundations already laid, acquiring a familiar brand with a system in place and receiving an established network of contacts and suppliers. This also takes the pressure off creating a new brand and provides confidence in continuing operations.
More Stable InvestmentAn established brand is more likely to continuing growing, because of the base already in place. Banks and lenders are likely to consider this when advancing a loan or offering financial support. The general stance being it is less of a risk to finance a business which already has a proven financial history.
Current Customer BaseFrom a café to an IT company it doesn’t matter what the business specialises in, if it has a financial history it has an existing customer base. One of the main reasons interested parties choose to acquire an existing brand rather than start afresh is because of the current customer database held. Initiating a brand requires various strategies and marketing tools to attract consumers, but this task is avoidable with an active business.
Competent Staff in PlaceOften transferred in a sale is a team of employees, just because an owner wants to transition it doesn’t necessarily mean the staff want to do the same. Time, money and effort are required in sourcing potential employees; with an existing business, the current staff members will most likely know the business inside out and will help you transition into the handover of operations.
Less EffortStarting a new business requires money, lots of new ideas and most importantly effort which can often become labouring. Taking over an existing business means that procedures have been simplified meaning more time and money can be spent on growing the existing business further through marketing initiatives and renovation.
Running a business can be an enjoyable and rewarding experience, allowing people both young and old to become their own boss and run their own business. If you’re looking to buy a business, you can see our full range of businesses for sale here.