Is it better to start a business from scratch or buy a business. There is no one answer fits all solution. There are many factors to consider, not the least of which being your age. Why age? Because in our experience it takes an average of 3 to 5 years to build a business and get true traction. If you’re 23 years old 3-5 years isn’t an eternity. But if you’re 61 years old investing that amount of time may just not be practical. Here’s a list of ten reasons why most people choose the buy route.
- The buyer can start drawing a paycheck immediately.
- It is usually a lot easier to obtain financing for an existing business with a proven track record than it is for a start-up.
- Buying an existing business can save you from 3-5 years in start-up time and costs.
- The staff of an existing business is already trained and experienced – no learning curve is necessary.
- The previous owner can provide invaluable assistance, training and guidance after the sale.
- Your sources of supply and “quantity pricing” are already be established.
- Credit with vendors is already in place and may likely be transferable.
- A successful business history increases the likelihood of your future success.
- You will have immediate access to a large customer base (developed over many years).
- A solid, long-standing reputation with customers, vendors and the community at large lets you build quickly on a successful base.
BUY OR START A BUSINESS – WHICH IS RIGHT FOR YOU?
There is no cookie cutter answer that is right for all people. Tap into my experience in both starting and buying businesses. I can help you make the right decision.