Why Buy An Existing Business

by Richard O'Brien Business Sales listing specialist

Statistically a large number of start-up businesses will fail, with those surviving often being sold to have their new owners make the real gains.

Buying a business that is established and has a proven track record is always easier and safer than starting one from scratch.

So let the hardened entrepreneurs take the risk, develop the market, and find out what works and what doesn't.

Why to buy an existing business:

• Accepted products and/or services. They have already been developed, tested and accepted into the market place.

• Existing customers - these are the people or businesses that already do business with you. This means clients and cash flow from day one.

• Operating systems and processes - these are key to any business. These detail how the business operates, what keeps the customers coming and the cash flowing? This ties everything together. It's your business formula developed by the previous owners.

• Employees in-place - experienced and skilled staff who understand the business and customers.

• Business history. The previous owner has operated this business and will be able to show you it's financial records, it's cash flow, sales and expense records. All this lessens the risk to you and your bankers.

Before starting out in business decide what you want, what your objectives are, and understand your strengths and weaknesses. Plan the process and check out key the business for sale websites.