4 Reasons to Buy an Existing Business Rather Than Start a New One

If you’re considering owning your own business, there are generally two points of entry. One is to start your own business from scratch and the other is to buy an existing business. Although the idea of starting your own business is sometimes more appealing, buying an existing business definitely has some advantages.

Here are four ways buying an existing business can offer new owners a head start:

  1. A Tested Idea
    Buying an existing business means walking into something with an established, working concept. Compare this to starting a business from scratch with an untested idea and the reduced risk becomes obvious. Business owners that start something from scratch have to ask the big questions like, “Will this idea really work?” When you buy an existing business, it’s obvious that the idea has been tested and the concept with all its variables does work.
  1. Predictable Cash Flow
    An existing business has proven and predictable cash flow. Unlike starting a business from scratch and hoping the numbers are enough to pay expenses and salaries, an existing business has accounting records to determine accurate cash flow from the very start.
  1. Existing Staff
    Starting a business from scratch means finding and hiring an entire staff. When taking over an existing business, you are often the benefactor of an existing staff who likely enjoys working there and has relationships with customers. A business owner’s success is highly dependent on a strong staff team.
  1. Established Partnerships
    An existing business has established relationships with reliable and consistent suppliers. The business will also have loyal customers who have sustained the business over time. It is much easier to gain the loyalty of those existing customers than try to establish loyalty with new customers.

Starting a business from scratch can be an exciting proposition, but buying an existing business comes with obvious benefits that may equal more success over the long haul. At Regal Consulting Corp., our professional team of business brokers has years of experience helping clients sell businesses in New Jersey, Pennsylvania, New York, and Connecticut. Our expertise, integrity, and marketing tools ensure we price your business appropriately, identify a qualified buyer, and close the deal. Call us today and we can begin with a thorough business valuation and exit plan.