There are many benefits and reasons to buy an established business over starting a brand new one. With any new business, you have the base challenge of developing the products and/or services and then waiting to see what people are willing to pay for it, if they are willing to pay for it at all. Whether or not the established business has a positive or negative past performance, an existing will have a historical record which allows you to make knowledgeable decisions of whether it can produce a return on your investment or not. Buying an established business with a track record enhances your chances for success. Even if the business was mediocre in the past, you may feel your skills can turn it into a successful business.

Valuable Business Intelligence

When buying a business, you will have the opportunity to analyze the business’ operations, past history, its competition, its industry, and much more. You will be in the unique position of analyzing the wealth of information before taking the leap and investing your time and finances in the business.

Established Business Infrastructure

By buying an existing business, you will be purchasing the infrastructure along with the business, including equipment, computers, real estate, customers, suppliers, and much more. Your focus will uniquely be on how to grow the business from where it is today, rather than sweating all of the details the founder had to deal with at the inception of the company.

Price of Acquisition vs. Starting Over

In many cases, it is more affordable to buy an established business instead of starting a brand new one. With a new business, you would have to be investing in building a new office, buying brand new equipment, or finding the right people to work for you. When calculating the total costs of starting a new business versus buying an existing one, you may find that buying an established business is much more affordable and financially beneficial.

Negotiating the Price

Business purchases are open to negotiation, which gives you the opportunity to buy businesses for much less than the asking price. The flexibility of negotiation puts you in a strong position and gives you the opportunity to significantly increase the potential return on investment. Remember, many businesses are for sale because the business owner is having financial challenges or has a reason to leave, which becomes a valuable opportunity for you.