Four Reasons to Buy a Business Instead of Starting One

Every new business owner wants their company to run well. Many find themselves tempted to start a business of their own. Many studies have shown that chances of succeeding with a brand new business aren’t in your favor. Many entrepreneurs prefer buying an already established business.You may feel that buying a business is something completely new to you. It is often wise to seek the aid of a business broker. In this post, you will learn the benefits of buying a business instead of starting your own.

Acquisition of Talent from Business: Starting a new business will leave the owner the task of finding talent. You might find that the early stages of a business are dedicated solely to talent acquisition. If you are able to find the right talent, you will still need to develop them. Developing talent can take months, if not years. Buying a business gives you immediate access to a pool of talented staff. Hitting the ground running is much easier when utilizing staff with a track record with the company.

Not Having to Start a Customer Base: One of the most difficult things for a new business is growing customers. A new business will have to start from scratch to obtain new clientele. On the other hand, an established business will already have clientele. How large of a customer base you will work with will depend on the size of a business.

Brand Familiarity: Buying businesses for sale means that marketing has likely already been completed for you. In previous versions of said company, a marketing plan and images have already been created. Buying a business means building on an already established brand which is often easier. A report by BizBuySell.com found that, in 2016, 7,842 companies were sold.

Less Overall Risk: Obtaining an established business is less risky because it already has a track record. A new business may take quite some time to establish a presence. In turn, an unproven business is often seen as a more risky candidate. Being a high risk is never good, especially when trying to obtain outside funding. In 2016, 63 percent of business brokers reported that more business owners were wanting to sell.

It is wise to seek the help of a business broker. What does a business broker do? A broker will provide business acquisition support at every step of the way. Knowing when to call a business broker is essential. It is recommended to make this call when you are serious about acquiring a business. Waiting too long to call a business broker could mean two things: missing a sale and missing out on important knowledge. A business broker has a vast knowledge of local businesses for sale as well as the buying process. These professionals will perform a business valuation to help ensure you’ve found the right business. A business valuation is created to determine the present value and chances of future cash flow.

In closing, there are many beneficial reasons to buy a business instead of starting a new one. An established business will likely have a talent pool in place. You won’t have to worry about growing customers from nothing when buying a business. Starting your own business means having a brand no one is familiar with. Buying a business already has you starting out with branding taken care of. An established business is far less risky to lenders than a brand new one, in most cases. A business broker is a great source of help during a business acquisition.