Advantages of Buying an Established, Operating Business VS: Starting From Scratch
Fact: 80% of new businesses fail in the first 3 years
Fact: Most established businesses continue to be successful
Fact: Most established businesses continue to be successful
If you are motivated by personal accomplishment, stimulated by challenge, and want to be your own boss, then business ownership is for you. However, let someone else take the risk and high cost of starting from scratch.
Buying an established business provides you with two of the three necessary components of success - a proven location (or customer base) and the right product. You provide the third ingredient - management.
The following are just some of the advantages of buying an established business versus starting a new one:
- The market can't support another competitor
- Get up and running quickly
- A successful business may stay successful while you get up to speed
- May have equipment and assets you want
- Set-up and installation costs are cheaper or not necessary
- Their clientele may be your clientele
- Get the "best" location or acquire a favorable lease
- Expenses, scale, and revenues are known
- Easier to get licenses and permits
- Easier to get loans and other financing
- Intangibles: Goodwill, Brand Name
- Supplier relationships are established
- Trade credit may be established
- Inventory is in place
- Get key employees on your team
- Get trained experienced employees and staff
- Prevent competitor from entering area
- Little competitive backlash or reaction
- May be able to use the experience and advice of the previous owner
If you would like to receive an email with our new listings, complete the form below. Your name and contact information will never be shared with anyone outside of Company Broker Inc. under any circumstances, and you can be removed from the list at any time.
< Contact us for more
information >