We’ve all heard about the big-name companies that owe their success to an enterprising spirit and good timing. Were it not for their ability to see an opportunity and seize it, they may not even be here today. You may have started out your business by buying an existing business and managing it well; or perhaps you started your business from scratch. Either way, the key to continued growth in your industry may only be possible by buying another existing business.
Before you let your investors or colleagues talk you out of making a major investment in another venture, consider these benefits of buying an existing business.
- As a Colorado business broker, one of the simplest reasons I’ve heard for buying existing businesses is this: “It’s a lot faster and much safer than creating your own.”
- Another advantage is time. When you see an opportunity in the marketplace, sometimes you just don’t have the time to start slow and build an infrastructure that would allow you to “seize the day.”
- Bypass all the start-up problems, such as acquiring necessary equipment and supplies, hiring staff, and scouting out a location.
- Consider the fact that buying an existing business will often save you a lot of money. When an owner is anxious to sell for health or domestic reasons, he or she will often accept an offer that is far less than what the business is actually worth.
- When you deal directly with the business owner, you can often find out more about the competitive landscape, the seasonality of the business, attitudes within the community they serve, and other unforeseen variables. The owner can also offer advice on dealing with vendors and existing contractors, eliminating much of the guesswork in these areas.
- You will already know who to call for supplies and services for the business. Just this one benefit alone could save you months and save you loads of aggravation.
- In many cases, you can retain the current staff of trained employees who will stay aboard and help you learn the business. The most valuable staff members will want to help you get up to speed quickly and prove to be indispensible during a transfer of ownership.
Find out more about the benefits of buying an existing business by visiting BizSale.com’s list of businesses for sale by owner. Here you will find great tips for buying and selling an existing business, plus numerous businesses for sale by owner.