Buying A Business Rather Than Starting One Up

Like it? Share it!

So, you have decided that you want to have your own business? This is something a lot of people desire. One of the main decisions you will need to make is whether to start up your company or buy one that is already established. In this post, we will talk you through the reasons why you should consider buying an existing business.

  • Instant customer access – One of the great things about buying an established business is the fact that you are going to have instant access to customers. This is because the business owner before you will have already built up a customer base. You are not tasked with attracting customers from scratch, and thus you get a good head start.

  • Make the most of an established brand – When you buy an existing business, they have already focused on branding the company. They already have a brand that is recognised. You will probably already have a website as well as trademarks and copyright. This reduces the amount of time and money you have to spend on getting established.

  • You can earn money from day one – This is one of the most compelling reasons for buying a business as opposed to starting one up. When it comes to the latter, it is likely that you are going to go through a significant period of time where you do not make money. This can be difficult, with everything from legal fees and initial stock to installation and licenses to pay for. Not everyone has the luxury of being in a financial position to afford this.

  • Less work – Most people would agree that there is a lot less work required when buying an established business. However, with a start-up, there is so much to do, and if you don’t have this time or energy, you will struggle to get your business going.

  • Securing finance is easier – You will also find it a lot easier to secure finance if you are buying an existing business. Lenders will be more inclined to give you money because there is less risk involved from their point of view. The business has already proven that it can generate income, however, with a startup there is no evidence that things are going to go well and that you will be able to pay back the money you have borrowed.

  • Trained employees in place – You will have the personnel ready and waiting. You don’t have to go through the process of looking for the right people to help you get your business off the ground. It takes a huge amount of time to build up employees, suppliers, and other contacts for your network. However, this is something you don’t need to worry about with an existing business. Instead, you can focus on looking for one or two people that can take the company to the next level.

  • Focus on business growth – Finally, focusing on business growth as opposed to getting a business off the ground is something that appeals to a lot of entrepreneurs. Putting all of your energy into getting a business started can be exhausting and expensive, and, of course, there is a lot of risk entailed.

Of course, you could meet somewhere in the middle and opt for a franchise instead. With a franchise, you will have an established business model, yet you will need to set the company up. McDonald’s is one of the most famous franchises. When going down this route, seeking professional assistance is advised. Not only could you find a Mosquito Authority franchise for sale with this company but they will give you training and coaching to ensure you turn it into a success. This comes highly recommended.

Finding an office/business premises if you go down the franchise route

There are lots of different business offices for you to choose from. There are several different factors which you should consider in order to help you make your decision. The first thing you need to bear in mind is the monthly payments incurred and the deposit that you will have to put down. After all, you need to ensure that the rent of the office is one which fits into your business’ finances. Therefore, it is often recommended that you sit down and devise a budget before you begin to search.

Once you have deciphered your price range, you can then begin to further narrow down your search. One prospect you should certainly consider is to opt for serviced offices. These come with everything that you need to run your business already available, this includes the likes of a postal service, IT support, office furniture, security, parking, staffed reception, cleaners, and much, much more. This is a beneficial selection to make for various reasons. First and foremost, serviced offices are more convenient and present individuals with much less hassle when moving in. In addition to this, because of the little to no start-up costs associated with this option, this also means that it is a choice which is well suited to the current economic climate because it presents companies, especially small ones, with a chance to get going and gain some momentum.

In addition to this, you also need to decide the length of lease you wish to take out for the offices. Most businesses tend to take out a yearly lease, anything more than this is a commitment which is usually too big considering the current economic climate. Nevertheless, a lot of offices will not allow a lease anything less than a year or in some cases six months. However, if you opt for serviced offices then you tend to benefit from more flexibility on your contract.

Aside from the points already mentioned, you should also think about the size of the offices you need. After all, if you go for offices which are too small then these will feel too cramped and cluttered and this will have a negative impact on productivity. Alternatively, if you opt for offices which are too big then you are likely to be spending more money than you need to.

And finally, make sure that you seek your rental through a reputable and reliable letting agency. You should read the reviews that have been left by previous customers in order to determine whether they have been left satisfied or not. Moreover, make sure that you read every single last word of the contract.

Like it? Share it!

, , , , ,

No comments yet.

Leave a Reply

Powered by WordPress. Designed by Woo Themes