The question of whether it is better to Buy vs Start a business is one that many business buyers face. This includes both individual buyers as well as businesses considering expanding. Often the choice is based on the age of the Buyer. A young entrepreneur with no family obligations often looks a the issue differently than a 60 year old considering a second carer.
Here are 10 key advantages of buying a business versus starting a business.
- 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 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.