IS IT WORTH BUYING A BUSINESS ESTABLISHED IN UNDER THREE YEARS? “Well-established” seems to be a very common bullet point when it comes to advertising the key considerations of a business for sale. Indeed, the longer the business has existed – the more attractive it should theoretically be.
Author:
Farzin Hesari
Director, LINK Business Sales (Melbourne) and LINK Business Sales (Tasmania) P: 03 9819 4211 E: farzin.hesari@linkbusiness.com.au linkbusiness.com.au Farzin is an energetic, passionate, and a constantly evolving person. Having had an extensive background in operating small businesses, Farzin has developed a deep understanding of the business brokerage industry which seen him quickly rise to become one of the leading brokers in the country.
Which, of course, leads to the question: what about buying a business that has been established for under three years? Is it too much of a gamble? Is it any better than simply starting a business from scratch. Well, to answer that, we must first ascertain a few things: first of all, purchasing an existing business is often incredibly beneficial versus starting a new one. Successful existing businesses will generally have a track record of success and a reputable name within their
communities. Businesses also have existing customer bases, established revenue streams and fully trained staff members, tried-and-tested systems and procedures among others. While most purchasers look for businesses that have been operating for years due to their stability and tenure, start-up businesses that have less than three years of operations are also appealing for several reasons.
ALL THE ADVANTAGES OF AN EXISTING BUSINESS A business operating for less than three years can have most of the advantages of one that has operated longer. It already has all of the plant and equipment 7
