4 reasons why you should find a business for sale instead of starting a new one
If you have been harboring dreams of running a business and being your own boss, but are not sure where to start, now would be a good time to consider buying an existing business. The truth is, you don’t have to start a business from scratch. Instead, you can opt to purchase one that is already in existence, which will allow you to take over quicker with an already established brand and recurring revenue stream. This may prove to be a better option compared to building one from the ground up if you want to get a return on your investment faster. With that in mind, here are five reasons why you should consider buying a business instead of starting a new one.
Proven success
An existing business may have undergone the normal business cycle and emerged successful while managing to remain profitable. Such a business has a stable income and an established reputation. The risk associated with such an investment is lower than those of a new business. As someone who is just starting out, you will have fewer things to worry about since much of the work is already taken care of. This is especially true if you are looking to set up shop in a local area. For example, if you are looking for businesses for sale in Michigan, and are not that familiar with the area, it will definitely make more sense to look to established businesses to help you break into your chosen market.
Ease of Securing financing
An existing business has a track record that boosts its chances of attracting funding from investors, banks, and other financial institutions. Most financial institutions are more willing to lend money to someone purchasing a business compared to one that is just starting up. You will not have to finance the whole cost of the purchase from your personal savings. Most financiers are keen on determining that a business has the ability to generate income before they commit their money to it.
Immediate Access to Clients
Existing businesses have established customers. The benefit of this is that you will not have to worry about getting your first clients, which is often a difficult task. You can continue getting an income from the current customer base while strategizing on ways to get more clients. The available clients may even help with new strategies. They can offer great insight that can result in in you optimizing your conversion process. Their ideas are likely to have the greatest impact in terms of growing your market. As an entrepreneur, purchasing a business saves a lot of energy that you would have to channel into a new business in an effort to get it off the ground.
Available trained workforce
Building a team of skilled employees can be a hard task. With an already existing business, you can take advantage of the available workers who have the skills required to operate the entity. They can make the implementation of various tasks easy and fast. Such workers can even handle important aspects of the business without the need for your constant presence and monitoring.
As highlighted above, purchasing an established business leaves you with less work compared to setting up a new one since much of the legwork has already been done for you. You will not need to overwork yourself trying to get things running. Investors will be more willing to finance the business due to reduced risks, and you will likely see profits from your purchase sooner than from the investment in a new business.