How to Value and Sell a Business Video

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, the market-leading directory of business opportunities from online media group Dynamis.