Why buying a business is better than starting up?
Investing in a business is always exciting but also full of hard decisions. One of these is the first question you ask yourself when starting a business adventure – should I buy an already developed business or start a new one from scratch? It’s true that both of these options have its pros and cons, but in this article, we’ll discuss why buying a business is better than starting up. Believe us, there are enough good reasons to make an investment this way.
Figure 1 If you wander if buying a business is better than starting up - you're in the right place. alt.tag: man using a computer, deciding whether buying a business is better than starting up
Income is not a problem
Building a business from the bottom up means you will have to wait for a while before you start earning steady money. It can take months, even years. Therefore, investing in a business that has already gone through that process and is making money, is a much better option. Another financial benefit in this situation is that you’ll actually have enough money to focus on improving and growing the business. When starting from scratch, finances are often a problem which generally frustrates business owners.
It’s easier to get a loan
Getting a loan from a bank or any other financial institution can be a long process when you are starting a business from scratch. The reason is simple – they are not sure if your business will be profitable in the future and whether or not you will be able to pay your debt. On the other hand, lending money for a business that’s already profitable will be much easier and faster.
Figure 2 Buying a business takes a lot of planning, so be sure to start in advance alt.tag: planning if buying a business is better than starting up
You inherit the company’s reputation
One of the reasons why buying a business is better than starting up is that if you choose a good company, you’ll inherit its brand, reputation, customers and other business relationships. When starting up a business, it takes years to create a strong business reputation and earn customers’ trust. However, be careful and check everything mentioned when buying a business. Be sure to invest in a business with a positive reputation and good relationships with vendors, clients, etc. Stay informed about listings and be the first to know about great businesses for sale.
You don’t need to look for customers…right away
Of course, you want your business to grow, no matter what. However, one of the reasons buying a business is better than starting up is access to the existing customer base. It’s very helpful to start having customers as soon as you start working. However, when starting a business from scratch, it’s not always possible. You’d need to wait for some time until people find out about you and start trusting your products and services. Just be sure not to rely on this too much, but find ways to increase the number of customers for sure.
Employees are already trained
It’s tiring and stressful training employees without knowing whether they’ll be appropriate for the job. So, another reason why buying a business is better than starting up is that you get already trained employees. This way, you don’t need to spend precious time on building the right team. All you need to do is to make the necessary modifications and set some new rules if you need to.
Finally, buying a business is better than starting up because it’s less risky
As you can see from the info we mentioned above, buying a business lets you skip a lot of the first risky steps you need to take when starting a new company. That’s why the process of buying a business is much less risky, stressful, and time-consuming. Therefore, if you appreciate these benefits – start going through listings and browse for a business that’s worth your time and money.
Figure 3 Good connections are very useful when buying a business alt.tag: handshake during an office meeting
What if a desirable business is in another city/state?
If you find a business that you really like – go for it. Think about all the benefits of moving to another place for business – new environment, new customers, new friends. Just be sure to move safely, even if you are moving just your home, or both home and office. Hire a professional moving company with a good reputation to help you out. Experienced professionals like gibraltarvanlines.com will handle both local and long-distance moves, and you won’t have to worry about the safety of your items. Furthermore, if you do buy a business, but you need another location – commercial relocation services are definitely something you should consider.
Other tips on buying a business
If you decide to buy a business and, for example, leave NJ and relocate to Florida with ease, here are some more tips on how to make safe and successful investment moves.
- research businesses from different sources – don’t stick to one choice only. Research local businesses, marketplace websites, ads, social networks, etc. Also, think about what kind of business you want, and research alternatives, too.
- review the desired business closely – be sure what you’re about to invest in. Do a thorough check of the business’ legal documents, contracts, so you can be aware of what you will be dealing with in the future.
- prepare your business plan - even though buying a business is better than starting up, that doesn’t mean you simply continue what’s been done. Make a business plan and think about the ways you can increase the value of the business and attract more clients.
- ask for advice – getting another opinion on this is extremely valuable. Ask the people who already have experience with buying a business what they think about your investment. It’s good to hear what other people think – but you should trust yourself the most.