Whether you work for yourself or for someone else, hard work is inevitable in order to succeed. The advantages of being your own boss, though, are often appealing to those who are looking to go the extra mile.
Being your own boss will mean having greater control over large parts of your life. You will be the one making the decisions that will affect the future of your business and your role in it. And you’ll have the advantage of dictating your own working hours.
Working hard will mean building your own legacy, rather than someone else’s and, as the business succeeds, you will be able to have the satisfaction that it was because of the risks that you took.
Born entrepreneurs will be excited by these potential advantages and may be looking for the best way that they can dive into this next challenge in their life. The good news is that you don’t have to wait until you have the perfect idea and the time to build a business from scratch. You can buy a business and jump right in!
Here we look at some of the reasons you may want to buy a business instead of starting one.
IF YOU HAVE THE MONEY, THERE IS LESS RISK
Buying a business will need a lot of capital. It will, of course, vary depending on the business and its potential profits but there is going to be a significant capital outlay of some sort.
The advantage, though, is that there are fewer risks if you are buying a business that has a proven track record. Hand in hand with the reduced risk comes the increased chance that banks will loan you the money you need.
To make sure that the business is less of a financial risk, you will have to do a thorough due diligence of any business you are thinking of buying. Be sure to get a clear idea of how the business has been doing over the last three or so years. You should also be sure to identify whether there are areas in which you can expand and so make the maximum return on your investment.
While starting your own business will take less capital at the start, significant investment will be needed throughout the growth stages of the business. And, without a proven track record, you may not be able to acquire the necessary loans.
YOU CAN MAKE USE OF AN EXISTING BRAND
Building a business also means building a brand. It can take years to establish yourself in the market with a reliable customer base. Buying a business will let you buy an already established brand.
This doesn’t appeal to everyone. The challenge of building a brand and creating a marketing strategy from the ground up and the creativity that this requires is sometime the allure of starting a business.
However, an already establish-ed brand does not eliminate all the creativity. Rather, you can use it as a platform to start from. As long as you don’t move the business in a completely unrelated direction, some changes to an already established brand can really develop the business.
ALL THE NECESSARY SYSTEMS ARE IN PLACE
Starting a business from scratch will necessitate a relatively in-depth knowledge of cash flow procedures, the industry, hiring staff and other vital parts of running a business.
Buying a business will give you the opportunity to take over already established systems that have been fine-tuned over the years. Not only this but you will also be able to see how the business fairs within its industry.
Your due diligence before buying any business will determine the usefulness of the existing systems to you as you will need to have a clear understanding of how well they work. You can also get to know who it is that will be working for you were you to take over the business.
If you are new to the industry or to running a business, consider negotiating a handover period. You may also want to enquire about the availability of seller financing. If the seller is invested in your success, they may be more willing to get you up to speed with what you need to know to keep the business moving in the right direction.
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