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Advantages of Buying vs. Starting a Business
The Buying Process and VR's Buying Services
20 Steps to Buying an Existing Business
New Buyer Registration



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Advantages of Buying vs. Starting a Business

Perhaps you've dreamed of owning your own business, and the freedom and control over your own destiny it brings, but you've been put off by the widely known drawbacks of starting a business:
  • 60% of startup businesses fail within 3 years
  • It takes two years on average for a startup to become profitable
  • It is difficult to identify a "breakthrough" product or service.

But there are easier and less risky paths to business ownership than starting a business: buying an existing business or purchasing a new franchise. Most established businesses continue to be successful because of three key factors, a proven location and customer base, the right product or service and management.

If you want to get into business, let someone else take the risk and high cost of starting from scratch. Buying an established business provides you with two of the necessary components of success - a proven location and the right product or service, you provide the third, management.

The advantages of buying vs. starting a new business are summarized in the table below.

Advantage vs. a Start Up
Buying an Existing Business
Buying a New Franchise
Much lower risk of failure
Generating cash from day one (in most cases)
 
Proven business concept and processes
Proven products and services
Established customer base and referral business
 
Established supplier relationships
Trained employees in place (that can help train you)
 
Immediate credibility and perception of success
Seller financing usually available (vs. usually not in a startup)
 

 

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