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Instead of starting a business, should you buy one?

On Behalf of | Oct 28, 2021 | Business Law

Have you always dreamed of starting your own business? You want to own a company and create your own career, rather than working for someone else. You want the freedom, and you also crave the chance for long-term growth and success.

Well, have you considered buying an existing business? You can achieve these same results, but there are some distinct advantages when you buy.

You can be in business quickly

Start-up time for a new business can be extensive. Some owners spend a year or more just getting everything set up, and then it takes years to get to a point where they are making money. If you buy a business, you can start running it almost immediately, and it may make money right away, as well.

You know the model works

When you buy, you get to examine the existing business model to see what success the company has had. You know if it works, how it works and what you can do to make it better. This takes some of the risk out of the process. If you start a company, you can never be sure it will work the same way.

You get the assets and personnel that you need

Buying a business also gives you a company that you can run, complete with everything you need. Physical assets, like machines, inventory and warehouses, are in place. Employees already work for the business and know how to do their jobs. You step in and run it, but the basic system is already in place.

You start with name recognition

Finally, your company already has name recognition. You have a customer base. You have reviews and sales. People know what the company is and what it does. New businesses have to work very hard just to tell people that they exist. You can skip that step and focus on growing your name recognition and influence, making it bigger and better, rather than just doing the basics.

If you do decide to buy a business, you absolutely need to know what legal steps to take and what mistakes to avoid.