Business Goods & Services

There are quite a few advantages to purchasing a business that currently exists over owning a business that you have to start from “square one”. Here is a look at some things to consider when debating whether to buy a business over a start-up enterprise.

FINANCING. A buy business proposal is much more likely to be approved by banks, rather than any kind of start-up enterprise, because of the business valuation data which is readily available. Therefore, you’re more likely to obtain financing to own a business.

TRACK RECORD. A business for sale has been up-and-running for a period of time. With a purchase business, you have historical data on past performance, the market, competition and its future growth potential. You can purchase a business as it is and restructure it to include your own ideas. As you already have a fairly good idea of the value a business retains, you can work on its weaknesses and make the most from its strengths.

SOLID ASSETS. When you value a business, assets are a key component. With purchasing a business, you’re obtaining essential assets that allow you to continue to do business as usual. As a buy business turnkey operation, you don’t lose time or money setting up a business. When buying a business, inventory is already in place and the business has existing employees and customers.

APPEAL. With a business for sale, you can select the one that particularly appeals to your personal interests or inclinations. Even if you purchase a business that’s already up-and-running, it can still be considered as a start-up operation if you’re intending to restructure it according to your own vision.

OPTIONS. Buy business options range from small family-run operations to large companies. If you’ve an interest, you can also choose to buy business franchises. Whichever purchase business route you take, conducting a business valuation is important. When you properly value a business, you can be quite confident that the total price you’re paying out to own a business is reasonable.

VALUE. A business for sale brings a wealth of value. The buy business portfolio includes everything you need to continue on seamlessly with the business. The business valuation is an important step to ensuring you are getting a profitable enterprise. When you value a business, other factors beyond it being financially sound need to be taken into consideration, including tangibles and intangibles included in the sale. When you buy a business, you also need to decide if it’s a stock or asset purchase. All of these issues should be covered in the business valuation phase.

Unlike a start-up, when you buy a business, you are free from dealing with finding the best location, the costs of equipment and supplies, setting up vendors or suppliers, acquiring licenses and permits, hiring employees, establishing brand recognition, identifying industry competition, and the costs of marketing and promotions. But if you’ve always wanted to start a business yourself and experience all the nuances that go along with it, then buying a business might not be for you. If you prefer not to inherit someone else’s creation and own a business that you create yourself, then a start-up probably best fits your entrepreneurial personality. However, if you’ve always wanted to run a business, then a business for sale is your best option.

Richard Parker is the President and founder of the prestigious Diomo Corporation – The Business Buyer Resource Center. His celebrated materials, seminars and consulting have encouraged thousands of aspiring business buyers from around the World to pursue their dream of buying a business.

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