Many dream of owning a business. While it's obvious to anyone who seriously considers it that it would involve a lot of hard work, the challenges and rewards remain very appealing.
One decision that you
will face is whether to start your own business or to take ownership of
an established one. Although there are several
reasons why some choose to go down the start-up route, itÂ’s undeniable that
there are many advantages to taking on a ready-made business.
Lower risk
Buying
a business that has a demonstrable market and has
already generated returns for its previous owner makes it considerably easier
for you to secure necessary funding from lenders.
In a similar way, you
are more likely to be confident enough to undertake a business opportunity if
you can see that it is a going concern, while the uncertainties of starting an
enterprise from scratch may deter you from taking that all-important step.
Immediate returns
When somebody starts a business from the ground up, the initial overheads tend
to be so high that they can often find themselves having to live on savings or
loans as they subsidise the fledgling company.
A huge advantage when
taking over an existing business is the ability to realise a profit instantly.
A simple change of ownership shouldnÂ’t impact on the company's day-to-day
commerce so, as long as you have chosen a thriving business, this should mean
you will be able to take a wage from the outset.
Brand awareness
You shouldnÂ’t underestimate the time and money that must be spent to build a
strong brand awareness in the marketplace. With an established business, a lot
of this work will already have been completed, leaving you with a maintenance
task, which is a lot easier.
With brand awareness
comes an existing client base which is likely to remain loyal as long as you
respect the expectations they have of the business you have taken on.
Existing network
Business relationships are very important and building an effective network of
suppliers, advertisers, distribution points or other elements relevant to your
sector can take many years.
When undertaking your
investigation into potential purchases it is always sensible to find a business
that has successfully created this support network. As long as you communicate well
with these contacts, it is likely that the relationship will be transferred to
you, creating an invaluable asset instantly.
Experienced workforce
Of all the assets you inherit on transfer of the business, one of the most
important is the staff. If you were to start your own business, finding and
training a workforce would take quite some time and it would take even longer
for them to gain a full understanding of the intricacies of your specific
enterprise.
When you buy a working
company, however, there will be people who have all the necessary training and
who have built a relationship with your clientele and supply network, enabling
a smooth transition from the former owners to you.
Expansion
opportunities
The cumulative effect of many of these advantages allows you to invest in
expansion far earlier than you would otherwise have found possible. With
several years' worth of existing accounts, a strong business network, good
brand awareness and a competent and effective workforce, you can immediately
focus on introducing the company to new markets or increasing capacity.
Commercial enterprise is never an easy option; it takes dedication, hard work,
knowledge and a broad raft of people skills. Nobody enters business ownership
lightly but if there's a way of achieving it that can remove some of the
pitfalls and make success a more likely outcome, isnn't that the preferable
path? If this is how you feel, then buying an established business is probably
the most sensible step for you.
This article was contributed by BusinessesForSale.com, the market-leading directory of business opportunities from online media group Dynamis.