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Before starting a new business, you should understand the benefits of buying a business in order to make a good decision. Of course, both options have their pros and cons, but I’m confident that after thinking about why you want to be in business, you will decide to buy a business rather than start from scratch.

1. Established business

When buying a business, you acquire an already established name or brand and you have to pick up where someone else left off. This means you have to focus on maintaining the operations and improving the margins only, without worrying about early survival stages.

Another benefit to take into consideration is the fact that you don’t need to wait years to make profits, since the business is already running and with positive cash flow. Remember, you get what you pay for, so it is better to reduce your failure chances and buy a profitable business.

2. You already know the costs

You will have a clear understanding of all recurring costs and required investment.  You will know what is needed to maintain the operational costs and after doing a due diligence, determine whether it has equipment that needs to be replaced. On the opposite, starting a business from scratch will often come with surprises and unexpected costs right from the beginning.

3. Experienced employees

Another benefit of buying a business is the fact that it will have employees with experience in the industry and well trained according to your needs. Employees are considered one of the greatest assets of any business, and great employees sometimes can be priceless.

Having trained employees allows you to focus on the business growth and not spending time on hiring or training new employees. Experienced employees will also become your internal business knowledge base, since they already know what customers want or need.

4. Processes in place and business foundation

A business acquisition will guarantee that there are already processes and infrastructure in place, including policies, procedures, manuals and conflict resolution rules. Also, having an IT infrastructure in place might save you years of trial and error improvements, which would give you the advantage of being efficient since day 1.

 

Reduce risk and buy a business

The list goes on and on, and truth is that there are more benefits of buying a business than starting from scratch. However, you might think is very difficult to find a good business for sale, and that is also true. Like anything, you need to get support from the experts and in this case Business Brokers and financial advisors can facilitate the process for you.

Buying a business is an exciting journey, and many people find owning a business to be more satisfying than working for someone else. Feel free to reach me, I am sure I can help.