When I decided to quit my career for business, I had to make several other crucial decisions all at once. For instance, I had to decide on the type of business, the location and more importantly whether to buy an existing enterprise or start from scratch. Since I never wanted to introduce new products or services in the market, buying an existing business seemed the most suitable option.
One of the greatest advantages of an existing business is that you can access financial records and find out the revenues that the entity generates. I did not want to risk my money by starting a business from scratch mainly because I wanted a business that would start earning soon. You will certainly support me in that most startups take the time to make the first sale and I was not ready to wait for so long. Buying an existing business is probably the best decision that I made and I am always enjoying the rewards. I struggled searching for a good business to buy but the process is much easy now since you only need to visit the leading online markets listing businesses for sale.
If you are torn between starting a business from scratch and buying an existing one, I would boldly advise you to go for a business in operation. If you pick the right type of business and focus on providing better services than your predecessor, you are likely to start earning from the first day. Besides, you will not spend time, effort and resources searching for ideal premises, modifying structures, buying equipment, undertaking surveys, looking for suppliers or convincing first clients. All these have been done for you by the first owner. Even though an existing business may cost you a little more compared to setting up your own from scratch, it will only take you a short time to start reaping the fruits if you choose the right business.
During my interactions with my friends who started their business from scratch, I have discovered that their business took about six months to attain a viable sales level. Often, the market research gives promising revenue figures of potential business revenues. Although this may be true for some entities, the outcome is not guaranteed and the risk is significantly high. However, existing businesses have track records so you can check sales, revenues and possible financial risks before making the final decision. Besides, you can carry out your own research or engage an accountant in assessing financial viability before you buy the business.