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New Business or Buy a existing Business?

New Business or Buy a existing Business

Buying a Business?

Unless you are looking at selling something unique into the market place, or you have previous experience to take a start business from scratch to a stage where it is profitable, buying an established business would normally be more attractive and financially rewarding.
The immediate benefits from purchasing the right business could be:

  • An income from day one as all assets and business structure are in place to generate
    the income.
  • Trading history with customers, employees and supplier relationships already in
    place.
  • Typically it costs less to buy a business when compared to the funding required to
    establish a startup, particularly when you consider the time it takes to set up
    operations, develop a sales pipeline, streamline the service delivery and make the
    sales before reaching a breakeven scenario.
  • It’s generally much easier to secure finance to purchase an established business
    when compared with seeking finance by way of a commercial loan for a new ‘start
    up’ with no track record.

What Businesses are Available For Sale?

Most people think that typical small businesses offered for sale are businesses such as
cafes, and other food or retail outlets, however almost all types of businesses come up for
sale at some point in time. For example businesses that may suit persons with a
professional background include:

  • Professions with specialist qualifications – Accounting practices, Engineering,
    consultancy, etc.
  • Business to business consulting services – Marketing and Sales, Advertising, Human
    Resources, IT.
  • Niche consultancy – Executive coaching and Mentoring services etc.