May 15, 2019 | Mason Roberts
Starting a business may be a big dream of yours that you have always wanted to accomplish. You may never want to work for another person again and be your own boss. You may have everything in order, from your completed product to the best marketing strategy to the perfect location to debut your business. You’re ready to take your dream to the next level. But the question is, should you? Is it the best decision for your career? Should you start a brand-new business on your own, or buy a business that is already accomplished? When evaluating this decision, there are several factors to consider.
Many startup businesses do not go as far as they initially hoped for. The owner will set a five-year plan for their future, set towards where they want to be in the end, and come up short. Anything can happen. If you choose to start a small business of your own, there is a one-in-one chance that it will either soar or sink. It is a very unpredictable path that you will have to work hard every day. So, considering your choices is important. There are a couple of options at your disposal that can make a big difference in your life for the better. Before committing yourself to purchasing a business, evaluate your choices.
Here are some rather than starting a brand new one.
Buying a business is a much more predictable, dependable choice. When starting your own business, there is a lot of risk factor involved. The success of your business can go every which way. If you buy an already existing business, you will generally know what to expect. There are already processes that run the business and aesthetics in place. Once you buy the business, you are free to do whatever you please with it, but you can also keep it just as it is. The possibilities are endless, but also much more reliable than a brand new startup.
Proven Brand Name
If you purchase an existing successful business, the brand will also be successful. You are buying a brand name as well as a business. If the business is as established as you had hoped, your brand will follow you. All the work the previous business owner put towards growing the brand will transfer indefinitely. All the networking and advertising that the existing customers respond too will continue to help you grow the business to its utmost full potential.
When buying a business, you buy everything about the business. With keeping the same aesthetic and products, you will keep the same bustling volume of customers coming in and out of your business. Now, if your existing customer number is low, you are free to make changes. You can bring some details to your business that will bring potential customers to your door within no time. The risk factor of this is, though, the potential of losing your loyal, existing customers. If you do choose to make alterations to your business, do your research before. Evaluate what your target market will enjoy and give them just that. This will ensure success with new customers, as well as raise the chances of your existing customers to stick around.
A big difference between starting a business and buying an existing one is being able to skip the entire initial process. If you were to start a brand-new business, there are a lot of factors involved. From finding funding to developing a business plan, all the way to developing a strong product. It can be a long and grueling process, one in which you may just want to skip. The problem is, you can’t. Starting a business is not an easy three-step process. If you buy a business, though, you can jump right into the workload. Everything is already set out for you, ready for you to get right into it. The foundation of the business is already there. You do not have to complete those tedious tasks that you would be responsible for in starting a brand-new business. Starting a new business entails spending a lot of money on necessities, such as computers. Buying a business means you are not responsible for those strapping tasks. All you have to do is go headfirst into your workload and excel your existing business.
Easier To Receive Funding
Finding funding for a startup business is not easy. If you do not have much business history or credit, or none at all, you likely will not receive funding. Lenders do not choose who they lend money too on a whim. There is much that goes into it. Buying a business will greatly increase your chances of receiving funding from a lender rather than owning a startup business. Lenders believe the risk factor is much lower when a business already has history on their side. In order to receive funding, lenders must make sure you are able to pay said funding back.
Focus On Growing The Business
When starting a brand-new business, you put forth a lot of energy on the concept of your business and getting it off the ground, rather than growing it. You cannot focus on growing something that does not exist. When buying an existing business, you can truly zero in on progressing it. The concepts are all there, all you have to do is truly work on them. You are able to focus on the weak parts of your business, helping your establishment become truly accomplished.
When buying a business, you are open to doing whatever you please with it. You are free to change whatever you deem necessary. The good thing is though, you can also keep everything the same. You will have trained employees on your side which you are welcome to keep on board. This will make your job as a boss much easier, somewhat eliminating the hiring process, which can be difficult.