Starting a new business is an exciting time, full of ideas and promise. It’s also incredibly hard; filled with long hours and seemingly endless financial investment and time commitment. This is particularly true if the business is brand new. One way to reduce some of the costs and risks associated with starting up a new business is to buy an existing business.
5 Primary Benefits Of Buying An Existing Business
When you purchase an existing business you’re buying more than just the physical site, some equipment and a client list. You gain a successful cash flow system, one that is currently in place, proven, and is making money. In addition to jump-starting a Buyer’s success, buying a business can enable a business buyer to leap for greater success and empower them to do it much quicker. Here’s a look at our top 5 reasons to buy a business that’s already up and running.
- Operational business. An existing business is an operational business. While some business buyers may fear that a Seller only would sell businesses because they are failing, most business owners are selling their businesses for personal reasons including: poor health, retirement, divorce, lack of interest, and relocation. If it’s still hard to believe, take a look at large companies like Google that make buy businesses all the time. Google certainly does not purchase failing businesses, they purchase them get further ahead in a faster manor. We recommend the typical business buyer to do the same. Buying an existing business works to your advantage. There’s no downtime needed to invest in equipment, build a customer base, find suppliers, or train employees. Every process and procedure is in place. Everything is in order for you to walk in and start making money from Day 1.
- Fewer upfront costs. Established businesses are already perfectly outfitted. There are no build-out or equipment costs unless you’re changing the business entirely. You’ll spend less on marketing, finding employees, and getting permits for building changes. In a way, buying an existing business is like getting an “all-in-one” package deal. It also helps the buyer avoid costly spending mistakes that many new business owners are prone to.
- Existing employees. When purchasing any new business, most new business owners are able to retain existing employees when they buy a business. This is a huge help to new owners who may not be familiar with running that particular business day-to-day. Existing employees can fill in these gaps, smooth the transition to new management, keep customers happy, and end up being your greatest asset.
- Existing reputation. Building a reputation takes time and money. Marketing campaigns can be expensive and may not produce results right away. An existing business has a built-in customer base, an existing reputation, and an existing brand with logs, websites, signage, and designs already in place. If you’re savvy, you can search for businesses with a good existing reputation during your business search. This will save you from having to build your reputation from scratch or repair the existing reputation once you become the owner.
- Less Risk. In business there are no guarantees even though Buyers tend to expect them. Successful business people become successful by taking risks, but you don’t have to risk everything or even a lot in order to be successful. The main thing a business buyer is after when they search for a business is “less risk.” It would be less risk for them to purchase a business than to start one from scratch. All of the above-mentioned benefits lead to “less risk.” A lesser risk with an existing business and proven cash flow system provides more of a guarantee than any start up venture could. You’ll reach your dreams faster with less financial investment, and your chances of success will be far greater than they would be starting from scratch.
To learn more about buying an established business in Florida, contact Crowne Atlantic Properties at 407-478-4101.