Becoming a Business Owner: 7 Key Benefits of Buying a Business
When it comes to buying a business, 90% of potential buyers fall through. It's an extraordinarily high number, and there are various possible reasons.
People become obsessed with the idea that the business might fail, or find too many risks. The truth is though, no business is perfect.
However, becoming a business owner of an already established company can be far better than starting your own in many ways. Don't back out because of some trivial reasons — it's time to go for it.
If you're wondering about all of the advantages of buying a business, here they are!
1. It's Low-Risk Compared to Starting a Business
When buying an existing business, there's generally less risk.
If you're starting your own business rather than investing your time and money in an existing business, the risk factors can be pretty huge. Many businesses fail fast and unfortunately, when starting a business, it's very hard to predict if it will be successful or not. Very promising business can flop.
An established business has already been through the risky first couple of years and made it out the other side. Presumably, they've already met a lot of their business goals and are generating a healthy profit.
By buying an existing business, you're skipping the initial risk period.
2. There Are Established Relationships Already
Regardless of what the business offers, whether it's a service or a product, there are usually established relationships with clients or customers.
They already know the business works for them, and they're ready to use them.
Although you'll want to continue to grow the business by going out there and finding more clients and customers to welcome into the fold, starting off with that base can be extremely helpful. There's no need to struggle for a few weeks or months as you try to find people to help — your starting base is already there.
3. You Might Have a Solid Staff Team
There's probably a staff team already working for the business. Takeovers can be tricky in that not everyone is always happy about them, but if you put your best foot forward, it's likely to go smoothly.
After all, this staff team is likely already invested in the business.
The staff team will have been there for a while, which means they already know what they're doing. This can cut training and hiring costs, since if you need to hire anyone new, it'll be far fewer people than if you had started a business on your own.
New business owners developing a good relationship with an existing staff team is vital and will pay off in the long run.
4. Learning Something New
When buying a business, you might know the business and financial world well, but not the industry you're coming into.
For example, you might be entering the pet industry or the gaming world, but have no idea about either of those things.
That doesn't mean you're going to be a bad owner! It just means you're going to learn something new and gain experience in a new industry, which is invaluable.
Let the staff teach you about everything you need to know while you impart business wisdom.
5. You Still Have Creative Freedom
One thing that scares new business owners is that they'll have no creative freedom. By coming into an established business, they assume it's set up a specific way, and they won't be able to change anything. Understandably, that can be frightening to those who like to make their own mark on things.
This, however, isn't true!
Staff and clients alike will welcome improvements. This isn't to say you should come in and change everything in one shot, but you'll be welcome to put your own stamp on the business if it improves it.
You likely already have ideas if you went ahead with buying the business, so don't be shy to do it — although it's always wise to seek feedback first.
6. It's Less Work
In general, it's less work at the start. If you own multiple businesses or have another job, this simple fact might be what persuades you to buy an existing business.
You can skip out on:
Hiring and training staff
Working to establish the business
Finding those initial clients
Designing the website from scratch
Experimenting with what works for the business
You can make changes to all of these things, of course, but the solid foundation being there will make a huge difference.
7. It Likely Has an Established Reputation
Not only will it have a staff team and established clients, but it might also already have a reputation in that industry!
If the website is drawing in a good number of hits a month, or the client base is big, this is likely the case. No need to build the business up to be highly respected when the respect is already there — all you need to do is maintain it by carrying on with what they've been doing and putting your own mark on things.
Becoming a Business Owner This Way Might Be the Smart Choice
Becoming a business owner can be daunting in any scenario. However, buying a business from scratch involves a risk period and a lot of time and effort investment that buying an existing business doesn't.
If you've been afraid to buy a business, it might be time to take the leap. Don't look for the perfect business — look for the business that's well on its way to being so, so you can push it for the final few steps!
Looking to buy a business? We can help — let us match you with one today.