Have you ever dreamt of being your own boss? You’re not alone! Many entrepreneurs want to own a company so they can spend their days doing what they love and make their own rules. It is essential for entrepreneurs to be able to serve their customers best, unconstrained by others’ rules.
If you answered “yes” to wanting to be your own boss, you might think that the best route to take to start a business is starting from scratch. However, many entrepreneurs buying an existing business is a great avenue rather than starting over.
Why would you buy a business rather than starting your own business? Here are three reasons to consider:
1. It is Easier to Secure Financing
As we have all heard, “it takes money to make money,” and unless you have a hefty capital to start with, you will need financing. Those who go the route of starting their companies on their own often bootstrap. Bootstrapping is when one uses their savings, borrows from family and friends, and maintains low costs in their business.
Unfortunately, bootstrapping doesn’t always work, and it can limit how quickly you can grow your business. Receiving financing from an outside source is a more suitable choice. However, lenders and investors often look for existing customers, cash flow, and signs of success before they’re willing to hand over cash.
By buying an existing business, you have a framework that is already functioning properly. You are bringing in revenue from the beginning by already having customers. This makes it much easier to receive financing.
2. You Have an Established Brand
We live in an incredibly noisy world. In fact, Americans are exposed to 4,000 to 10,000 ads per day. Due to most people having a short attention span, it will be challenging to get noticed if you start a business from scratch.
If you buy an existing business, you start with an established brand that already has substantial customers. If the business is successful, then advertising is already ingrained, which means local residents have heard of the company and seen the store.
As an owner of an existing business, your duty will be to strengthen the brand and spread your influence. This is much easier than trying to break into the market from scratch.
3. An Established Operations System
Creating the business operations isn’t as easy as placing an “open” sign in the window. You will need to have a reliable and consistent supplier, accounting systems, customer service processes, and other contacts within the industry.
Are you looking to save time, money, and many headaches? If so, buying a business that already has working operations is the avenue for you. By having a functional system to start with, you can more easily make changes.
Starting a business from a clean slate is a lot of trial and error, and unfortunately, the wrong decisions can cause the business to fail. When you buy a company, you can start with the current process and then work to improve them.
Is it Time to Buy a Business?
Being an entrepreneur is a big decision, and you shouldn’t make it lightly. Instead, look at all of your options before you move forward.
You may have assumed that starting your business from the ground up was the only way forward; however, there are a lot of advantages to buying an existing company. If you are interested in learning more, contact us today!
