Want your own business? Should you buy an existing business? What are the benefits of buying a running concern?
Within a few years of starting up, the majority of small businesses have closed for one reason or another. Buying a well-established existing business gives the buyer some assurance they’re buying a tried and tested business model that works. And when you buy a business as a going concern, you don’t have to deal with start-up paper work such as registering for tax, VAT and as an employer.
When you have decided to have your own business, you have many decisions to make. Besides deciding in what industry you want to be, you need to decide where you want to be located, whether you are going to offer a service, produce a product, online / offline, how many staff members you will need …. and so it goes on. This article will only discuss the benefits of buying an existing business. Check out my previous posts and future posts (Under SERVICES on main menu, choose New Posts or click HERE).
Benefits of buying an existing business (instead of starting one from scratch):
- Start earning immediately. You skip the start-up process to find premises, promoting the business, set up systems, etc.). As it is a running concern, you will have sales (income) from day one.
- You gain access to well located premises. In retail location is imperative to success. By taking over and existing business you get a premise that is well located.
- You have experienced personnel. This means you need not go to the expense of recruiting and training staff. You will leverage years of experience. Established relationships between staff and customers are another bonus. Existing staff often have more of a coalface perspective than the boss – they can provide valuable insight into how the business runs and areas that could be improved. In such cases, staff are likely to feel more comfortable communicating their concerns to a new boss, and may be able to suggest ways of solving the problems.
- Current contracts with suppliers and customers. No need to search for suppliers, build up a track record while benefiting from historical discounts.
- Established image. Customers already know the business, and know it for professional conduct and what they can expect from the business.
There are many advantages to buying an existing business if you can find a well-priced business that interests you. It’s always important to be sure the business you are considering is right for you, and it is crucial that you learn as much as possible about its financial status, history, value, and strengths and weaknesses before you commit to the purchase. Contact Prof Gary with your requirements. Click HERE for more information.