Jun 07 2008
Should you Buy a Business or Begin a New One?
The prospect of owning and operating your own business can be a heady experience; however, the reality of becoming an entrepreneur quickly reveals numerous decisions that must be made before your dreams can become a reality. One of the first decisions you will need to make will be in regards to whether it would be better to buy an existing business or begin an entirely new one. While both avenues have their advantages and disadvantages, there is much to be said for the idea of buying an existing business.
As surprising as it may sound, purchasing an existing business can be less expensive than opening a new business in many regards. Even if you are not constructing a building from the ground-up to house your new enterprise, many times there are costs associated with opening a new business that simply cannot be anticipated from the outset. When you opt to purchase a business already in existence, you do so with the firm knowledge of the amount of money you will need to invest in order to get in on the ground floor. While you can always anticipate additional costs for other expenses, at least you have a firm foundation on which to start for accounting purposes when you purchase a business.
One of the most frightening aspects regarding the start-up of any new business is the fact that you will need to start from scratch in terms of customers, vendors, employees, equipment and systems. This spells additional investments of not only money but time as well. A primary benefit to purchasing a business that has a history is that you will be able to take advantage of an infrastructure that is already in place. Even if the company has not had a glowing success record in the past, you can save tremendous time and money by not being forced to start from the ground up.
Finally; if you decide to go with the route of purchasing a franchise you may well find that the presence of a support team that is already in place can be invaluable. Starting a brand new business is unfamiliar territory for many people, but the option of purchasing a franchise gives you the benefit of the knowledge and experience of the franchise team standing behind you. Because it is their name on your business, they are invested from the very beginning in your success.