For many people, buying an established business is very appealing. Not only do you get experienced staff and an existing customer base, your location is established along with a brand and network of suppliers.
Within a few years of starting up, the majority of small businesses have closed for one reason or another. Purchasing an existing business should give the buyer some assurance that they are buying an already tried and tested model that works.
Existing businesses that survive and prosper typically perfect their operations over time, meaning you should be able to inherit a well-oiled machine with all its processes streamlined and supported with documentation so you can hit the ground running in a fairly short period of time. The franchise model is a great example of such a business.
A major advantage of buying an existing business is that you inherit its market, namely its customer base. This means you don’t need to pour as many hours and dollars into marketing and advertising as you would with a new business.
While buying an existing business usually involves a greater financial outlay than starting from scratch, there tends to be more peace of mind advantages that offset the expense.
All up, there are many advantage to buying an existing business. However, just because a business has been operating for some time does not guarantee that will continue. It’s always important to be the sure that the business you are considering is right for you and that you learn as much as possible about its financial status, history, value, strengths, weaknesses and opportunities before you commit to the purchase.