Buying An Existing Business-Risky?
There are many reasons why buying an existing business is a great option to consider as you embark on the path to business ownership. But, do rule out you other options. Buying an existing business may not be the most realistic path for you. The options that you have to choose from are home-based businesses, start-ups, buying a franchise and Multilevel marketing business. If you're dead set buying a business but need a little bit of direction before moving forward, let's discuss why you SHOULD buy an existing business as opposed to the other options available you. InvestmentThe most obvious thing that I want to touch on is the investment involved in comparison to starting a business. You may think it is a lot less to start a business than it is to buy one. That is not entirely true. Investigate this for yourself and you quickly see that the costs involved with building a franchise location from scratch can cost you in the millions and could take years for you to recoup you initial investment. Also, the capital required to start a business from scratch can add up quickly in certain industries such as technology or manufacturing. It's much easier to secure the capital for buying an existing manufacturing business than it would be to start one from scratch. FlexibilityThe options are unlimited in terms of negotiating, the price, terms and conditions that you may have before making a purchase. You can even negotiate the financing from your asset based financing or any of the financing sources that you plan to use. The flexibility is one of the most attractive reasons why you should pursue your desire to purchase an existing business as opposed to the other methods that we've discussed. Cash flowwhen you buy a business today, you start collecting pay today. With any start-up, that is not going to happen. It could take you years before you start to collect any kind of income from the business. If you buy a decent sized business you could collect a nice six figure income immediately. Try earning an income like that from your start-up business. TimeConsider your time and consider how much time it would take to not only start a business but the time it would take to make in successful and profitable. When buying an existing business, there is really no time involved to make it successful, assuming you're buying one already successful. The only time in involved is searching for and buying the business. The can happen in as little as 3-5 months. 6 months if you're moving slow. The above 4 reasons are not end all be all. They are just 4 of many reasons. When you are pursuing your ideal business to buy, be sure to enlist the services of the right advisers. These could be your lawyer, accountant, consultant and financial planner. These people will guide you
through the process but it's you the will make the final decision. If you are concerned about the cost involved, no need to worry. If you can do some paper, send out emails and a few solicitation letters, you can save yourself a lot of money in the process and do a lot of the leg work yourself. One of the best pieces of advice I can give is to keep in touch with the prior owner. You'll never know when you need their advice. You could even negotiate some sort of retainer fee during the purchase price that way you'll have access to the person the ran the business for years prior to you buying. I have the above information has help you to confirm you desire to buy an existing business instead of starting one. IF there is anything that you think I can do for you, please get in touch with me and we can talk about your situation and put a plan together for you. All the best in your desires to buy an existing business.
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