Why Start a Business When You Can Buy an Established One Instead?
If you’ve been considering starting a business and feel overwhelmed by the work needed to get established, don’t file your entity paperwork just yet. There are many successful business owners who are ready to start the next chapter of their lives and are looking for someone like you to take over their companies. Whatever your budget, you’re certain to find an existing business on the market that can give you the freedom and security of calling the shots without the stress of building your brand from scratch. If you aren’t sure whether purchasing an established business is right for you, there are several benefits to consider.
You Start with What You Need
When starting a new business, gathering your resources can be an expensive and time-consuming task. When business owners sell their companies, they generally include the tools and equipment you’ll need to be successful. Instead of searching for your basic necessities, you can focus on adding additional resources at your leisure to improve the brand or make it your own. Especially in the case of businesses that have been open for years, it’s likely the previous owners have encountered the most possible complications and have secured the necessary tools to handle those situations. Businesses that require employees will often already be fully staffed so you don’t have to worry about hiring. You’re prepared the moment you take over.
You Inherit an Established Customer Base
Existing businesses have already built a customer base and, as the buyer, that base will often be transferred to you. This gives you automatic legitimacy in the area and allows you to build on the business’ established reputation. Building a following can sometimes take years for a new business, but taking over a company already known to the community skips that need. You can direct your efforts toward beating the competition instead of proving yourself in your industry.
It’s Already Profitable
Entrepreneurs know that it takes time for a new business to generate profits. How long generally depends on the industry, the work put in, and luck. Existing businesses have already pushed through their nonprofitable period and established revenue. What’s more, the financial records for those businesses can give you an idea of their financial proficiency, allowing you to tailor your approach to your needs.
You Decide Your Efforts
Perhaps the best benefit to shopping for an existing business is the ability to choose something that meets the amount of time you have available. If you’re looking to roll up your sleeves and get down in the trenches, newer companies or those that are struggling, give you the chance to get your hands dirty. If a hands-off approach is more your style and you want something that generates revenue without the need to be in the office every day, an older company with a solid record of success and strong staff can often run with minimal intervention. The business you choose can reflect the level of involvement you wish to have.
Entrepreneurs enjoy creative control and professional freedom, but starting a new business can be significant work without any guarantee of reward. Purchasing a business can solve those issues. Existing companies already have the necessary resources, an established customer base, profitability history, and can require as much, or as little effort as the buyer prefers. If you’re ready to sit at the helm of your own company and want more information about buying an existing business, call our office today at 800-971-3270 or send an email to Hello@Twelve31Advisors.com to speak to one of our knowledgeable brokers about your options.