NEW OR USED? BUYING AN EXISTING BUSINESS might get lenders on your side faster than starting from scratch. It also offers distinct advantages.
- Buying an existing business is usually less risky than starting anew. Top business experts say it’s the safest and most effective way to go into business by yourself, because:
- A formula for running the business is already in place.
- You hit the ground running. you don’t have to reinvent the wheel, which might be necessary if you buy a new business.
- You’ll have an established customer base. This can be a real boon while you work on marketing and promotions to further build your business.
- Equipment, facilities and inventory will already be in place.
- As in any business, you’ll need to do things like generate cash flow and hire employees. Buying an existing business should make this easier. If the business comes with existing employees, they should be familiar with many aspects of the business.
- Buying a business may give you valuable legal rights, such as patents or copyrights, which can prove very useful and profitable.
WHAT’S THE DOWNSIDE? Buying an existing business is often more costly than starting from scratch. At the same time:
- It’s easier to get financing to buy an existing business. Lenders feel more comfortable dealing with a business that already has a track record.
- The success rate of the new business is lower thn that for existing businesses.
LOOK FOR A SEASONED SMALL BUSINESS with a proven track record and at least 3 years of financial records. To locate suitable businesses:
- Check the “Business Opportunities” or “Businesses for Sale” classified sections of your newspaper and your monthly IWS Newsletter. Don’t forget to try similar searches on the Internet.
- Consider finding an expert business broker in your area to help you purchase your business most successfully.
- Find businesses you’re interested in and call the owners to see if they want to sell. If not, ask if they know anyone else who wishes to sell a similar business.
- Now hit the ground running! There are millions of businesses for sale right now throughout the United States and across the globe.
Copyright © 2006 by International Wealth Success, Inc. All rights reserved.
Tyler G. Hicks, the president of International Wealth Success Inc., is the author of many wealth building publications, including the Starting Millionaire Success Kit and the Fortune Builder’s Program Kit.