• Thu, Jul 28, 2022
  • Should You Buy or Start From Scratch? A Guide For Prospective Business Owners
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  • Click here for a link to the full article by Dawn Suiter published on July 25, 2022 in Huntsville Business Journal.

    While the idea of custom-building your own business from the ground up is exciting, there’s another option to consider: buying an already-established business or franchise. This comes with a list of pros and cons, so as a prospective business owner you’ll need to evaluate what’s best for you.

    A few pros of buying an existing business: 

    • Established companies may have better financing options
    • Existing licensing and permits
    • Existing customer base
    • Established supply chain
    • A trained staff and proven operations
    • Lower operating costs
    • Greater likelihood of success

    The potential downsides: 

    • High initial investment cost
    • Existing company reputation and culture
    • Outdated technology

    Ready to look for business opportunities? Websites like BizBuySell or LoopNet can help you find existing companies or franchise opportunities in your location of choice and provide key information such as business owners’ reason for selling, gross revenue, cash flow, and number of employees. 

    With due diligence, you can minimize risk and maximize the benefits of buying an existing business. Ultimately, the decision of whether to buy a turnkey business or to start from scratch is up to your specific objectives, needs, and desires. Adventure awaits–to paraphrase Connor Knapp of Piper & Leaf, the first step is the scariest–very few rewards come without risk, and if you don’t take that leap of faith you’ll never know what’s possible.

    Contact me if you would like to discuss.
    Steve Niehaus, MBA, CBI, CM&AP
    [email protected]