Do you dream about being your own boss and taking control of your life? Are you wondering whether to start a new business or purchase an established business?
With a reportedly high failure rate for new ventures, the financial risk of starting a business from scratch is unappealing to many people.
Here are 5 compelling reasons why you should consider buying an existing business.
1.Cash flow from day one
Most start-up businesses take time to become cashflow positive, and this can be months or even years, so you may need very deep pockets to fund your dream business!
However, if you buy a business with established revenue you could receive income from the first day of ownership which will assist you in paying your business expenses and any loans that you may have taken out to purchase the business, as well as your salary if required.
2.Obtaining finance will be easier
Finance companies are more likely to lend you money to buy an established business with existing income and employees, good financial records, and a successful track record.
If you choose to start up your own business you may find that banks are less enthusiastic about lending you money, even if you have the world’s best business plan and awesome cash flow projections!
3.You can focus on growing the business
Rather than putting all your entrepreneurial energy into implementing systems to manage basic sales, marketing and accounting processes, you can focus on taking your business to the next level.
An established business will have existing systems and trained employees, leaving you free to focus on the areas of the business that require the most attention and creating greater potential for rapid business growth and profitability.
4.You can leverage the existing reputation and brand
Buying an existing business and name means that you can capitalise on a loyal customer base in the same location that the business has been operating, potentially over many years.
This gives you a huge advantage over a new business that may take many years to build the same brand name and reputation (if it survives at all!) and will make it easier to obtain new customers.
An established business has a reduced risk of business failure due to the existing cashflow, employees, systems and reputation, whilst low interest rates also make now a good time to obtain business finance.
If you undertake sufficient due diligence on a potential business purchase to maximise your chances of success before you sign on the dotted line, and have experienced business advisors to support you, then you will reap the rewards of being your own manager and controlling your future.
To discuss your business purchase requirements please call Dale Wood Business Sales on 8334 0600 for a confidential discussion, or view our business listing