What are the five main benefits of buying an existing business for sale? There are many advantages of buying an existing business over starting your own business from scratch, but here are five common benefits of buying an existing business that you should be aware of before you make your final decision.
1. You’ll already have customers
First, buying a business means you will have customers right off the bat. Owning your own company often means that people are coming to you in order to purchase your goods or services – not the other way around. So even if there is a customer base for what you want to sell already, this saves you from having to build it from scratch! The second great thing about buying an existing business is that you know what to expect in terms of profit margins, overhead costs, and more – so all that hard work has been done for you already. Plus, there’s no worry about staffing or struggling with marketing strategies because someone else has done all the hard work for you.
2. No business plan is needed. You can learn it on the go.
The process of getting started is easier and faster than starting a business from scratch. You also can purchase the assets you need to run the business instead of purchasing everything new. There are built-in processes for daily tasks, eliminating the time needed to reinvent the wheel when starting from scratch. You get peace of mind knowing that there have been problems fixed along the way and employees who have taken care of them. You also avoid startup costs such as permits, licenses, or certifications because your previous owner may already cover them.
3. No need to create a full-blown sales funnel
Buying a business can be scary and a huge undertaking, but it’s worth it in the end. You’ll have all the tools you need to make your business profitable, resulting in more income. In addition, there are fewer operational hassles when operating as the owner versus serving as a manager. Plus, you’ll enjoy a certain level of security that comes with owning your own business. However, as the owner and employer, you are responsible for paying taxes on employee income and your profits. The only way to avoid paying these taxes is if your employees earn less than £5,000 annually – unless they work as independent contractors or self-employed freelancers.
4. You can be more selective when searching for the right business.
When searching for a business, entrepreneurs have access to a vast range of options: They could try to start their own business from scratch or buy an existing company. While buying the company can be more expensive than creating it, it offers a number of benefits that make it well worth the cost. One is that you’ll already know what you’re getting into and will not have as much risk as with a new start-up. Another advantage is being able to select the kind of business you want; instead of guessing which type would do best, you can choose the one that’s been successful in the past and get into production right away. Finally, you’ll also find more opportunities for expansion since the infrastructure will be set up from the start.
5. Keep your day job as long as you like
If you have a job that supports your current lifestyle, why not keep it while you run your new business on the side? There are ways to start slowly so that you can figure out the challenges and get more comfortable. For example, you might consider taking it slowly, taking just a few customers for a trial run before expanding. Another option is teaming up with someone with more expertise in one area, like sales or marketing, and sharing skills as needed.
Where can I find businesses for sale?
There are numerous places where you can find a business for sale. Most commonly, businesses are sold through listings on popular business for sale directories. These websites allow you to advertise your business for sale, usually on a monthly fee basis which can help you generate leads from interested potential buyers.
What if a business for sale is not right for you?
Don’t worry. Buying a business for sale isn’t for everyone. If you’re not interested in following in the previous owner’s footsteps but still want to get into the business world with more support and backing and make a difference, we recommend you consider buying a franchise. These business opportunities are usually much cheaper than buying an existing company for sale and can be a great option, especially for new entrepreneurs who have never run a business.
You can gain these five benefits from buying an existing business for sale. Better still, there is no need to reinvent the wheel when starting your new venture. In many cases, you will only need to change small details of the operation to have a profitable and successful company on your hands. That’s why buying and taking over a profitable business is such a great decision: all you have to do is help it grow and get it off the ground. The icing on top? You’ll be able to enjoy the stability that comes with already having a customer base while living life as a business owner! If you want to find out more about buying a business for sale, we recommend you read our guide on choosing a business to buy.