Starting a small business provides many opportunities for you as an entrepreneur - from being your own boss and staying flexible in terms of schedules and locations to pursuing your dreams and expressing your creativity. However, the initial part of the whole endeavor can be so stressful and overwhelming that it might kill your desire to run a business altogether. Sure, you could abandon this idea and find a quicker way to find money that could be spent on your hobbies or cars. If your credit score is decent, you could do that, for example, by visiting www.societyone.com.au.
But there is another solution to that problem - you can purchase an already existing business and skip the startup phase. But would it be as profitable as you think?
In this article, you will find more information about the most important pros and cons of buying an existing business, ranging from getting access to an existing customer base, a market-tested product, and an established brand to getting scammed, and having difficulties with implementing necessary changes, among other things. Continue reading and make an informed decision on whether to buy an existing business or not.
What Are the Pros of Buying an Existing Business?
Avoiding the Startup Grind
Most entrepreneurs get overwhelmed by the number of things they will have to do in order to become successful, from developing a marketing strategy and launching a website to creating a social media presence and hiring a team of employees. According to an independent online broker - https://www.anorak.life/, the significant workload, and intense stress could have a negative impact on aspiring business owners’ health.
However, if you buy an existing business, you can focus on what is really important for your business to be successful - things that add value to whatever you are selling and have the potential to attract a greater number of customers. The foundations will be ready, and you will only have to improve the processes and use the potential - implement a PBX phone system, CRM, all kinds of new technologies that might help you make a profit.
Acquiring an Existing Customer Base
The second advantage of purchasing an existing business is gaining access to an existing customer base. You can take advantage of that fact and start making profits almost immediately. In addition, it might allow you to skip the process of building a brand’s image from the ground up, which usually takes months.
Obtaining an Established Brand and Product
Obtaining an established brand and product are important advantages of buying an existing business. If you decide to purchase a company that has already been in the industry for a long time, you will be able to skip the process of developing the products and focus on improving things and expanding.
Choosing the Right Company
There are many different types of companies that you can buy, ranging from small businesses with only one location to bigger companies operating in locations across the country. The latter type often offers more value for money, as they already have an established customer base and an existing infrastructure in place.
However, if this is your first business acquisition, you should focus on buying a smaller company with fewer locations and customers but the potential to grow. This way, you will learn how to manage a company.
What Are the Cons of Buying an Existing Business?
Potential Lack of Creativity and Flexibility
Starting your own business allows you to express your creativity and pursue your dreams. This is particularly true for entrepreneurs who want to combine their passion with their work and start a business related to their hobbies or interests.
If you choose to buy an existing business instead, you might not feel as passionate about it as you would about something that you built from scratch because it was not your idea in the first place. It might not feel as fulfilling, either.
If you are after creativity, flexibility, and independence, then starting your own business might be a better option for you rather than purchasing an existing one. However, there are ways to be creative within an existing business structure, for instance, by experimenting with different products and services. You should not be discouraged from doing it. You just need to find the approach that suits your needs.
Potential Lack of Control Over Your Working Schedule
Starting your own business gives you the opportunity to have flexible working hours, choose where to work from, and be your own boss. You do not have any restrictions and someone standing over your shoulder telling you what to do. If you end up buying a business, you might have trouble cooperating with the people who have already been working for that business for a while.
Lastly, it is not impossible that you will end up getting scammed. Unfortunately, there are a lot of dishonest people out there who want to take advantage of those who do not have experience with buying businesses.
What these people usually do is post an ad on a popular website and pretend to be desperate to sell their business as soon as possible. Then, they will contact interested buyers and offer them their business on the cheap. Once a person shows interest in buying their company, the scammer will start asking for more and more money.
If you want to avoid wasting time on such scams, you need to be really careful when searching for businesses for sale. Do your research, ask around for recommendations, and talk to the established sellers.
Starting your own business is not an easy task - it requires a lot of time, energy, and effort. However, buying an existing business can be equally challenging. It does have its benefits, such as giving you access to an established customer base, but it does have a few downsides, too.
In order not to lose your money, you should take your time, do your research, and make well-informed decisions. That way, you should be able to acquire and run a successful business in no time!