Why Buy an Existing Business?

May 21, 2010

Starting a business in this economy is enough to give most people an ulcer, especially if it is a complete start-up.  Of course, that all depends on what type of business you’re in, but most agree it is better to wait until things improve. 

It is with this thought in mind that I started looking at a Businesses for Sale by Owner directory on line the other day.  It was then that I realized that the best way to get started is to buy an existing business.  Rather than the headaches involved in starting from square one, it is much easier to buy a healthy business from someone who has already gone through the “start-up” stage. 

One benefit of using a Businesses FSBO directory instead of a business broker is how much you will save on agents’ fees and commissions.  Not only that, you get to speak directly with the business owner in most cases, avoiding a middle man.

Here are some advantages for buying existing, profitable businesses.  It might even make you want to start browsing a Businesses FSBO for yourself.

• Your product and market will already be developed among current and potential customers
• You will already know that a viable market exists for your product or service
• The business will already be an established presence with a developed base of customers
• Employees (if any) are already trained and ready to go
• Existing business can cost much less to buy than starting a new one
• You won’t need to apply for a new business licenses and registrations; you will only need to change the existing ones.

Conversely, if the prior owner was irresponsible or drove away business, it may be tough to follow him or her.  The existing inventory may already be obsolete, or the business may have more liabilities or uncollected receivables than you can handle. 

If you are looking to buy an existing business, then consulting with a Businesses FSBO directory is a great place to start.