There are many reasons why buying a business could be easier than starting your own. 5 reasons why this may be a better approach are set out below….
The first reason in why it maybe better to buy a business than start your own, is that you’re not just buying a business you’re buying a brand, a recognised brand, which means that some of the hard work has already been done for you. As you’re buying a business, you’re buying a brand, meaning they should already have a recognisable logo and name so you wont have to spend hours thinking about what you’re going to be called or which design you should use for your logo. As well as this, most established brands should have a company website or social media page, which again saves you the stress and money of designing a new one.
Linking back to reason one, what comes with a recognised brand? Existing customers! Most brands and businesses should have an existing customer base, meaning you will have instant access to loyal customers. This saves having to spend fortunes on a new marketing campaign trying to persuade people to give your business a chance. The business is new to you but not new to them! Take advantage of the existing customers by asking them questions, for example what they like about the business, what could they want in the future? Save yourself the sleepless nights wondering if anyone’s going to come walking through the door on your first day by buying not starting!
As well as an existing team of customers, your business may also come with a team of fully trained, and experienced, employee’s. This is a great reason to buy instead of start as this will save you a lot of time on interviewing and training a whole new team. The existing employees will also have a lot of experience of the business, experience you probably don’t have, so use them wisely! Having existing employee’s come with your business is also good for familiarity with customers, loyalty to your staff and the brand can be invaluable!
For a new business it can be hard to find banks, and lenders etc who are willing to help financially, especially when there is no history or proof that you can generate money and profits. This is again why buying could be better than starting from scratch because you will have all the books and records as proof of past revenue and profits which will help secure any further financing you may need.
After buying a business you’ve already got a brand, already have your staff and have your loyal customers, meaning you have plenty more time to focus on the bigger picture, use this as a platform for growth! Use the existing business to your advantage, focus on the parts of the business that need your attention and more importantly focus on what you can do to grow. You don’t have the same worries and the stresses people do when they start from the bottom, use your time asking yourself ‘how will I grow this business?’ instead of ‘how will I get the business off the ground?’