Are you thinking about giving up your day job? If so, you’ve likely thought about what you want to do afterwards. For most people, the idea is to quit their jobs and work for themselves! We are a proud nation of successful entrepreneurs. It’s small business owners that provide the backbone to our economy.
Quitting your job isn’t a decision to get taken lightly, of course. Setting up a new business from scratch requires a lot of time, money and dedication. For some savvy entrepreneurs, they can bypass the startup stage altogether. How? By purchasing an established business, of course!
But, is it a good idea? I think so! Here are seven reasons why buying a business can be better than starting a new one up from scratch:
It’s easier to secure finance
Chances are you will need to borrow some money for your future endeavors. Not everyone will start a business on a shoestring. Especially if it doesn’t involve teaming up with investors or other backers.
Borrowing money for a new business is akin to getting blood from a stone. Commercial lenders are more likely to entertain established businesses with a proven track record.
You won’t have to give up your social life
The thing about starting a business from scratch is that you’ll spend almost all your spare time on it. But, when you buy a ready-made business, there is less work to do. You literally just take over the reigns and enjoy the fruits of someone else’s labor!
It’s easy to buy a business without getting burned
Some of you might be thinking that you could get ripped off buying an established business. The truth is; that seldom happens anymore. Why? Viking Business Brokers and providers like them ensure that buyers don’t end up with a raw deal.
You’ll get income from day one
The thing about most startups is they don’t make any profit until their third year of trading. If you’re baulking at the prospect of not having an income for three years, buying a business is for you. As soon as you take over, you can receive an income and not need to worry about money so much.
Part of the challenge of setting up a new business is creating a new brand and marketing it. When you buy an established company, the brand is already known to the world. All you need to do is concentrate on increasing brand awareness.
Less financial risk
If you’ve checked the financials of the company you want, you’ll notice there is a lower risk of failure. That’s because the enterprise is profitable and runs like a well-oiled machine. Starting a new business from scratch means taking big risks.
You have access to a network of contacts
Customers, suppliers and marketing contacts. They are all available at your fingertips when you take over the running of a business. That means you don’t have to spend so much time networking and advertising.