There are advantages as well as disadvantages of becoming boss yourself. It doesn’t matter, whether you start from scratch, be a part of a chain (open a franchise) or buy an already existing business. In any case, like most of entrepreneurs, you will get to know that you can minimize the risk by buying an existing business.
So let’s discuss the advantages of buying an existing business:
Establishing the main system of a business is often the most difficult part becoming your own boss. However, if you buy an existing business, the system is already in place. With the business you will be inheriting its supplies, methods & equipments. The original owner of that business would have already worked on the basic things of system like, location, advertising, store fit-out, prices, competitors, suppliers and many other variables. It means, rather than spending your time on these fundamentals, now you can budget your time for more important things of a higher level to make your business more successful. If you are purchasing an already successful business, you may not need to make many changes in it. If things are already smooth, you may only need to tweak them a little bit just to make them work more efficiently. In short, all the groundwork will already be done for you.
Getting income from first day is a great advantage of buying an already established business. As compared to new or start-up business, an already established business has gone through its start-up period – investing money for training, fixtures, equipment and a huge list of different start-up expenses, all of this while producing no income. This phase can be very tricky for new owners and can be bypassed by buying an already existing successful business.
Most advantageous thing about buying an existing business is the customers that you get along with all the equipments and systems. Getting customers instantly is a great jump-start to all business owners. It also means that you can now consider of solidifying and growing your already existing client’s base, rather than building it thoroughly. Other than customers, you also get the staff employed in that business. Most of the times, a business will come with such employees who will be willing to stay on board and will help you to learn the business. You will already have experienced people on your team and now you can keep an eye on the bigger picture. Just about anything is possible if you have a great team.
Buying an already existing business minimizes most of the risks for you. It removes start-up problems and saves your time as well as money in many ways. If you buy an already tested and running business, you don’t have to do all the groundwork as it has already been done by original business owner. In this way, you know that you are walking with everything in place. The existing accounting records of business can help you analyze the long and short run profits of the business. You can make other key decisions on these analyses. On top of everything, the original business owner can provide you the valuable insights of the business as well. All these minimized risks can help your success strongly.
Though becoming a business owner always includes risks, but by buying an already existing business, you take a more calculated risk. It removes many of the failures and pitfalls that a start-up could face.
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