We hear a lot about starting a business, seldom do people talk about venturing into entrepreneurship by buying a business. Buying an existing business is less risky than starting one from scratch. Most new businesses fail within the first five years. An existing business has a history which could serve as a springboard to your success.
Some of the advantages of buying versus stating a business from scratch are:
An existing business already has customers which are a source of immediate cash flow. If you had to start a business from scratch you will have to spend time and money to get these customers.
An existing business is usually recognized in its community. Brand recognition is something that takes a new business owner years to build.
An existing business overtime has experimented with so many strategies in building the business. By the time the business is ready to sell, the owner knows a lot about what works versus what does not work. What works is systemized and becomes parts of the business processes.
All the assets you need to operate in the business are often included in the selling price. For the most part you acquire these assets at relatively cheap prices.
More often than not the seller will train you before completely making a transition out of the business.
If you are thinking about buying a business, you do not need to have the selling price in cash. You can request a loan from a bank alongside with seller financing. The cash flow from the business will be sufficient enough to pay back the debt. Finally, do not hesitate to open up your mind to this idea. As you venture into entrepreneurship buying a business can increase your chances of business survival.