What are the Advantages of Buying an Existing Business?

[Suba]

Often we get the opportunity or offer to buy a business that is already running, so the new business owner only needs to run it without having to change the system and procedures and also does not need to recruit expert employees. So the new owner only needs to evaluate and make improvements to all aspects that are considered necessary. Every choice we make will always have pros and cons, so what do you think are the advantages of buying an existing business?

 

[Fidelia]

The advantages of buying a existing business is that you would find it easier to run the business because it most likely is already well known.

 

[Springtime]

The advantages of buying an existing business are you already get a customer base, a system of running the business. All you need is to make improvements.

 

[Augusta]

You inherit an existing customer base, brand recognition, and operational processes, saving time and effort compared to starting from scratch

 

[oliver991]

The biggest advantage is immediately having cash flow and an existing client base. You skip that first year of burning through capital just to get people through the door, which is huge for stress and viability.

When I was looking for a small acquisition, the guys at Bridge Point Business Brokers were really good about pointing out which opportunities had genuinely stable recurring revenue versus ones that were just coasting on old contracts. It cuts down the risk significantly. Make sure you do your due diligence on why the current owner is selling.

 

[Augusta]

A prospective buyer can see the financial history of a business – when sales are high and low, what the true expenses of the business are.

 

[King Belieal]

If you buy a business that is already existent and is viable, you would have good customer base to kick off without too much efforts on marketing

 

[wisdom01]

A prospective buyer can see the financial history of a business – when sales are high and low, what the true expenses of the business are.

Transparency is key, buyers love seeing the real numbers, builds trust and confidence in the investment.