Starting vs. Buying a Business
5 Reasons Why Buying a Business is Better than Starting Your Own
Starting your own business from the bottom up can be an extremely daunting task, even for the most seasoned entrepreneurs. Not only is it extremely costly and time-consuming, but it can also be extremely risky. For this reason, it is often better to consider buying a business rather than starting one from scratch.
Here are 5 reasons why buying an existing business is better than starting your own:
1. Established Infrastructure. When you buy a business, you can immediately focus your efforts on running, improving, and growing your business. Tedious start-up work, such as acquiring licenses and permits or setting up basic items like computers and telephones, are already in place—saving you time and money.
2. Proven Concept. Unlike a new business, an existing business has a proven concept and a successful formula for operating already in place. This reduces risks and makes obtaining financing easier because of the established history, assets, and proven idea.
3. Relationships. Building important, lasting relationships is an important part of any successful business. When you buy an existing one, you are acquiring access to an established customer base, relationship with vendors/suppliers and employees who are already familiar with all aspects of your business.You also get an opportunity to learn and train with the former owner as part of the transition period.
4. More Cash Flow. One of the benefits of buying an existing business is the immediate cash flow. Unlike starting a business where it may take months, years (or in some instances, never) to become profitable, an existing business will already have an income.
5. Less Risk. An existing business is less risky. Buyers have less to worry about because an existing business already has an established customer base, a proven concept and operating process, a location, and an existing cash flow that will likely provide some immediate income to the buyer.
Buying the right business starts with choosing the best business brokers to help you. At Florida Connexion Business Brokers, we have the extensive experience needed to help buyers secure profitable results. Our brokers provide the counsel and help you need to purchase and run a successful business in the highly competitive U.S. market. Contact us today.