When someone says they want to go into business for themselves, often the first things that come to mind are cash-strapped 80-hour workweeks and the high failure rate of starting a business from the ground up. But going into business for yourself doesn’t have to start this way. There are real benefits to allowing someone else to put in those startup hours and prove the concept and then stepping into their role.
In this article, we will explore the advantages and disadvantages of buying an existing business. These will vary depending on your skill set and the business you consider purchasing, and your success isn't guaranteed, but the failure rate of companies younger than five years is so high. You need to carefully weigh the pros and cons of buying an existing company.
1. It's a proven concept
2. Financing is often easier
3. You may save time and money
4. Access to a database of existing customers
5. Immediate cash flow
1. It may be hard to know all the facts
2. Potential for old and outdated equipment
3. The existing company culture may not be the best
4. Past due payroll or sales taxes
5. You may lack industry experience and expertise
For more information, click here for a link to the full article.
Steve Niehaus, MBA, CBI, CM&AP