One of the most important decisions you will make in your life is the day you decide you want to be your own boss. Working for yourself doesn’t always mean you need to start your own company. There is risk and reward in both starting a new business and purchasing an already existing business. I’ll tell you why you should choose the latter.
Experts say start-ups don’t make money for the first three years! If you don’t have at least 1-2 years’ worth of personal and business expenses set aside banks can be reluctant to fund a new business venture. In acquiring an already established business the sale is typically structured so that you can cover the debt service, take a salary and have some still left over to take your business to the next level.
Established/Successful Concept
Starting your own company from the ground up is a major risk and requires long hard unpaid hours, remember the previously mentioned three years? Buying an established business is grossly less risky and as a buyer, you already know that the concept works. You’re setting up your own demise if you start a business without even knowing who will buy your product. Your bankers will thank you for choosing a secure investment and financing will often be much easier to attain.
To Brand or To Rebrand?
If you already have an established company rebranding the store is just fine. However, if you have a startup. buying the brand name can be valuable. You are acquiring any pervious and on-going marketing the previous owner has already done for you. Having an established name in the business community along with your new marketing strategy can give you quite the head start.
Acquisition Period Training
With the attainment of an already existing business it is not uncommon for the previous business owner to stay on and help attain a seamless transition for the incoming owner. During the acquisition period it is extraordinarily valuable for the new owner to
Seasoned Employees
One of the most valuable assets you are purchasing when buying an established business are the people already existing inside. Your work has already been done by the seller that vetted out these employees for your specific business and they have proven themselves by working well within the company. Having trained experienced staff that know the game plan and are ready to show you the ropes and keep running smoothly while you transition in is invaluable. With the right team in place, you can have a much easier time strategizing your company’s growth plan.
Solid Customer Base
A solid customer base, even small has huge potential for success. A reoccurring customer base is essential to the vitality of any company. Having core loyal customers and sales statistics that show a slow upward trend is crucial to the business and luckily for you with an established business it is likely already there.
Buying an established company can mean you just need to tweak some things here and there to have the business you wanted running the way you need; your investors will appreciate you investing in something proven and sound instead of pursuing a foundationless dream with little chances of success.
The Six Reasons Becoming Your Own Boss Is Easier Than You Think
One of the most important decisions you will make in your life is the day you decide you want to be your own boss. Working for yourself doesn’t always mean you need to start your own company. There is risk and reward in both starting a new business and purchasing an already existing business. I’ll tell you why you should choose the latter.
Cash Flow
Experts say start-ups don’t make money for the first three years! If you don’t have at least 1-2 years’ worth of personal and business expenses set aside banks can be reluctant to fund a new business venture. In acquiring an already established business the sale is typically structured so that you can cover the debt service, take a salary and have some still left over to take your business to the next level.
Established/Successful Concept
Starting your own company from the ground up is a major risk and requires long hard unpaid hours, remember the previously mentioned three years? Buying an established business is grossly less risky and as a buyer, you already know that the concept works. You’re setting up your own demise if you start a business without even knowing who will buy your product. Your bankers will thank you for choosing a secure investment and financing will often be much easier to attain.
To Brand or To Rebrand?
If you already have an established company rebranding the store is just fine. However, if you have a startup. buying the brand name can be valuable. You are acquiring any pervious and on-going marketing the previous owner has already done for you. Having an established name in the business community along with your new marketing strategy can give you quite the head start.
Acquisition Period Training
With the attainment of an already existing business it is not uncommon for the previous business owner to stay on and help attain a seamless transition for the incoming owner. During the acquisition period it is extraordinarily valuable for the new owner to
Seasoned Employees
h3>One of the most valuable assets you are purchasing when buying an established business are the people already existing inside. Your work has already been done by the seller that vetted out these employees for your specific business and they have proven themselves by working well within the company. Having trained experienced staff that know the game plan and are ready to show you the ropes and keep running smoothly while you transition in is invaluable. With the right team in place, you can have a much easier time strategizing your company’s growth plan.
Solid Customer Base
A solid customer base, even small has huge potential for success. A reoccurring customer base is essential to the vitality of any company. Having core loyal customers and sales statistics that show a slow upward trend is crucial to the business and luckily for you with an established business it is likely already there.
Buying an established company can mean you just need to tweak some things here and there to have the business you wanted running the way you need; your investors will appreciate you investing in something proven and sound instead of pursuing a foundationless dream with little chances of success.
