Understanding the Pros and Cons of Starting a New Business vs Buying a Going Concern
As a professional business brokerage, we have worked with many entrepreneurs that need to consider the pros and cons of starting a new business vs buying an established business. While there are certainly advantages to starting a new business, in most cases, it is better to buy a going concern because you will gain access to a Proven Track Record of Success, an Experienced Team of Employees an Established Customer Base as well as Knowledge and Insights from the Previous Owner.
Proven Track Record of Success
Buying a going concern means that you are buying a business that has already been proven to be successful. The business has a track record of generating revenue and profits, which gives you a much better idea of what to expect in terms of future performance. On the other hand, a new business is a complete unknown. There is always a risk that it will fail, no matter how good your business plan or idea is.
Experienced Team of Employees
When you buy an existing business, you are buying a team of experienced employees. These employees have already been trained and are familiar with the business processes and operation. The benefit her is that you won’t need to spend time and money recruiting and training new employees. Additionally, the existing employees can provide valuable insights and advice on how to run the business successfully.
Established Customer Base
When you buy an existing business, you are buying an established customer base. This means that you already have paying customers for your products or services. With a new business, you will need to spend a lot more time and money building your customer base from scratch. This can be a slow and difficult process, and there is no guarantee of success. When you buy an existing business, you can start making money right away.
Knowledge and Insights from the Previous Owner
When you buy an existing business, you can avoid many of the mistakes that new business owners make. You can learn from the previous owner’s successes and failures and use this knowledge to make better decisions. Additionally, you can benefit from the previous owner’s contacts and relationships with suppliers, customers, and other business partners.
In conclusion, buying a going concern is a quicker route to market and will provide you with a Proven Track Record of Success, an Experienced Team of Employees an Established Customer Base and Knowledge as well as Insights from the Previous Owner. As a professional business brokerage we offer a FREE solution and extensive support to help you Buy a Business.