Why It Can Pay To Buy An Existing Business
Written on the 18 November 2013
If you’re looking impartially and unemotionally at the options ahead when starting your own business, you have to admit simply buying one already in operation is incredibly appealing. Not only do you get experienced staff and an existing customer base, you also get established premises, a well-known brand and a network of suppliers thrown into the mix too.
Skipping the start-up stage
Within a few years of starting up, the majority of small businesses have closed for one reason or another, which means buying a well-established existing business should give the buyer some assurance they’re buying an already tried and tested business model that works.
Inheriting systems, customers and image
A good business should come with tried and tested processes and systems that allow daily, weekly, monthly, and annual tasks to be carried out as efficiently as possible. For example, a tourism business should have a simple booking system that includes all the product options. For accommodation businesses, there should be a housekeeping system that has the premises fresh and sparkling in time for new arrivals and allows necessary repairs or maintenance to be recorded and carried out as soon as possible.
While buying an existing business usually involves a greater initial financial outlay than starting a small business and growing it gradually, there are some peace-of-mind advantages that come with the expense.