Two focuses of my blog are Financial Literacy/Money and Business/Entrepreneurship. There are numerous ways to get into business. One way is to start one from scratch and the second is the buy a pre-existing one. Many have done the latter successfully. The following contributed post is entitled, 5 Reasons Why Buying a Business Can Be Better Than Starting One.
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There’s no denying that there are pros and cons to starting a business from scratch. However, some people believe a better route into the world of entrepreneurialism is by purchasing an established business.
You’re likely considering this option but aren’t quite sure whether it’s the right choice for you or not. With that in mind, you should consider the following five reasons to buy a ready-made business and develop it, as opposed to starting an enterprise from scratch:
1. Buying a Business Isn’t Hard
The sad truth is that some people believe there is much bureaucracy to deal with should they want to buy an existing business. Did you know that the process is more straightforward than you might have anticipated?
For example, you could use a business broker service to help you find the right business and negotiate a fair and reasonable purchase price. Buying a company doesn’t mean you have to do all the research and negotiation work yourself.
2. It’s an Established Brand
One of the challenges of starting a new business from scratch is how you have to spend a lot of time and money promoting a new brand and making it memorable in the minds of your target market.
Thankfully, that isn’t something you need to worry about with an established brand. The business’s present owners will undoubtedly have cemented the brand’s place in your target market, and you can take over and develop that presence further.
3. Immediate Income From the Date of Purchase
When you look for established businesses to buy, one of the things you will consider is the brand’s profitability. If it’s a healthy enterprise with a healthy profit, it will get transferred to you once you complete the purchase of the business.
In contrast, you are less likely to have an immediate income stream from a brand new business that has yet to establish itself in the market. If you want a company that’s turning over money and boasts substantial profit, buying an established firm is the way forward.
4. There’s Less Work to Do
If you purchase an existing business, you get to skip all the hard work associated with launching a new brand. For example, you don’t need to conduct market research, cost analysis, find suppliers that charge competitive prices, and establish the brand.
A healthy and profitable business will only need a few tweaks at best to improve efficiency and performance. You’ll also have more time to develop long-term plans and take action to make those changes happen.
5. You’ve Got an Established Content Network
One final point to keep in mind is how you’ve got an established content network at your disposal when you take on an existing business. That means you can access suppliers, marketers, financiers, and more.
As you can appreciate, finding and forging relationships with such organizations can take a lot of time and trial and error. You don’t need to think about those worries when you buy an existing brand and turn it into your dream business.