If you’re hoping to go into business, you have two main choices; buy an existing business, or start your own. Many entrepreneurs and possible business owners often weigh up all the possibilities before making a final decision on what avenue to go down. It’s not always such an easy decision!
The most important thing for anyone trying to start a business, is that you are entering an industry that you are already knowledgeable about. This goes for both buying a business or starting your own, as it means you will already be equipped with the necessary skills to keep your business going.
In our latest blog, we look at some of the key reasons why buying a business is better than starting your own.
Easier to secure finance and income
When it comes to starting your own business, banks and other lenders may be wary because you are a higher risk. On the other hand, buying a business means that you are taking on an already established company with a successful business model.
Most lenders will be more inclined to help you financially when it comes to buying a business. This is because the business has already proven previously that it can generate an income; which means you can pay your lenders back!
Similarly, by buying a business you will experience an immediate income. Most start-up businesses don’t generate an income and might even work at a loss for the first few months, or even years, until they are better established. This means you have the resources to spend almost straight away, putting you in a much better financial position.
Access to existing customer base and contacts
Most new businesses will need to spend crucial time and resources building a customer list and making contacts in the industry. This is so important for a successful business; after all, without customers, you don’t really have a business.
By buying a business, you are also taking on the business’ previous customer base, giving you an established and instant list of clients that will offer repeat custom. The same goes for industry contacts. The previous owners will no doubt have built relationships with key players within the sector, and if you’re in luck then they may put you in contact with these individuals or other companies.
This can be a huge help in keeping the business going and remaining an important part of your community and industry.
Acquire a team of trained staff
One of the most important aspects of buying a business is acquiring the staff along with it. Good people make a great business, and if the business you are buying comes with a ready-made team, you are on to a winner!
If the staff come with the sale, you have access to a team that know the business well and can give you insights, as well as avoiding any disruptions during the takeover. The staff can ensure everything continues to run smoothly while you take time to settle in.
Experience less risk
Buying a business as opposed to starting a new one can be a less risky prospect. This is because you are buying something that has already experienced success and is a proven concept.
You are likely buying something that is well-established, with a brand already in place. This makes it much easier to become familiar with, instead of starting from scratch. It is easier to run because the guidelines are in place, whether it’s the brand story, development strategies or pre-organised finance reports.
Browse hundreds of businesses for sale with Bizdaq
Buying a business is exciting but it can be tricky to know where to start. At Bizdaq, we make it easier to buy a business thanks to our online platform, allowing you to communicate directly with sellers.
With 24/7 access, you can browse businesses for sale in your desired industry, ask the seller questions and arrange viewings or request specific documents. Thanks to Bizdaq, you are able to manage your purchase in your time, making it easier than ever before.
Posted on June 28, 2019 | buying, buy a business, how to buy a business, advice