Generally, buying an existing business is less risky than a startup. This is because a business already has an established customer base and reputation that generates cash flow and profits.
Additionally, employees are familiar with the business processes and procedures. All these benefits have value and are normally reflected in a higher purchase price.
It is typically also easier to obtain financing as bankers can make better decisions based on the proven track record of the business.
What type of business to buy?
Before selecting a business, it is important to consider the following:
· Business size
· Geographical area
· Labor pool, business costs, etc.
Additionally, it is fundamental to assess one’s own skills and experience and see if they will be useful and transferrable to the business.
Passion and willingness to learn are also essential.
For more information on buying a business, contact our office for additional assistance