If you’re a serial entrepreneur, then you may already be familiar with the benefits of buying an existing business. But with a slower-than-expected economic recovery, it is wise to proceed cautiously when searching for an existing business.
The ability to see an opportunity and seize it at the right time is a skill that has made many entrepreneurs rich, with many an empire being built by strategic acquisitions of synergistic businesses. However, with the rise of online business directories, the best businesses are often snatched up before a business broker even finds out about them. Staying ahead of these trends and finding the best deals on existing businesses requires keen intuition and skill.
Buying an existing business has certain advantages that are nonexistent in a startup. As long as you have the right amount of capital and the type of business you want is for sale, here are some reasons it may be smart to seize the opportunity.
- You might get it for a bargain, especially if the current owner needs to sell it quickly. Whenever possible, find out why the owner is selling so you can determine his or her level of motivation.
- Avoid the start-up problems of a new business, which can be quite costly. With an existing business, you won’t have to buy brand new equipment and you already know if their operating methods work.
- There is no need to guess about crucial decisions, like location, marketing, pricing and management. While these may not always be exactly what you would have chosen, at least you won’t need to start from scratch.
- Vendor relationships and other services for the business are already set up and under contract so you won’t need to go through a period of trial and error.
- The current owner will be able to provide valuable information about fluctuations in demand, competitors, community groups and other local resources that will help you run the business more efficiently.
If you are sold on the idea of buying an existing business and you want a comprehensive online resource for business listings, check out BizSale.com today.