Buying an existing business and starting one from scratch both have pros and cons, but for most people, buying an existing business is the far better option. Here are some of the reasons you may decide that it makes more sense to buy a company rather than start one.
Income from the very beginning
Most start-ups do not generate any revenue during the initial phase, which can last months or years. During this time, you may have some major expenses related to the premises, equipment, materials, legal fees, uniforms, and more. Without an alternative income or financing in place, this stage is tricky to navigate and can be discouraging for new business owners. An established business comes with built-in income, so you won’t have to worry about how to pay the bills.
Many lenders are more willing to provide funding for people buying existing businesses as opposed to those starting their own businesses from scratch. For the lender, there is less risk involved when the company in question is already generating an income.
Starting a new business can consume all your time because there is just so much work to do. It’s all too easy to let the business take over your life when you’re responsible for getting it up and running. Unless you are incredibly passionate about the business and have the time to devote to it, you may find yourself resenting how much time running it eats up. When you work with business brokers in Adelaide to buy an existing business, you’ll be buying a business with existing employees who already have training, processes that are already streamlined, and more – meaning that you won’t likely find yourself working around the clock.
Your Adelaide business broker can help you buy a business with an established network of contacts. That means you’ll save a significant amount of time and energy you would otherwise spend creating your own network. Instead, you’ll already have good marketing and supplier contacts as well as an established customer base.
If you obtain advice and business valuations in Adelaide to help you select the right business, you’ll be taking a much less significant risk than if you put everything you have into creating a company from the ground up. If the business is already doing well, you can be reasonably confident that it will continue to do so.
Where to find corporate advisory in Melbourne
If you are interested in buying a business and you need corporate advisory or the assistance of a business broker, contact Benchmark Business Sales & Valuations. Our brokers can provide business valuations as well as advice and guidance on buying your business, whether you are a first-time buyer or have purchased many businesses already. Our industry knowledge and experience allow us to provide our clients with the best possible service as results. When you are ready to make your business dreams come true, contact us for a consultation. We look forward to helping you achieve your goals.