The Benefits of Buying a Business versus Starting a New Business
Here are 7 benefits to buying an existing business rather than starting one.
Starting from scratch is a lot of work.
Consider all the work of selecting a name, designing website, do the marketing, developing sales processes and contracts, forms, etc. That is a pain in the rear!
An existing business has cash flow and faster growth potential.
When you buy an existing business some money is already flowing in. With cash flow and infrastructure you can more quickly scale the business.
An existing business has customers.
Having a base of loyal customers will give you piece of mind. They may not be loyal to you until you prove that you care about them, but once you do it is easier to sleep at night!
An existing business may have employees.
Many existing businesses have a few employees. Getting the work done by people who know how to do the work will make your job much easier.
An existing business has less risk.
Fifty percent of all new businesses fail during the first five years and the failure rate grows from there. Buying an existing business has a relatively low failure rate.
An existing business has tools, templates and processes in place.
Think about all it will take to design forms, contracts, and processes with a startup. All of these tools are in place when you buy an existing business.
The fastest way to grow your business is through existing customers.
If you want to scale your business, your existing customers are the fastest way to grow. If you start from scratch, you have no customers!
If you are tight on cash, and willing to pay the hard work price, starting a business may be right for you. Otherwise, spend a little cash and buy a business that fits your income needs and lifestyle!