As hard as it may be to digest, many businesses fail. This is especially true for start-up businesses where you have to introduce a new product or service. But if you have been thinking about it for a while and have decided that you would like to give being an entrepreneur a go, you may want to consider buying an existing or current business. The risks of buying an existing business are inherently less than if you were to start one on your own. Here are some of the other main benefits of buying an existing or current business:
A tried and tested concept
If you choose to purchase an existing business, it already has a track record – it has been proven to work. Of course, you have to check if the business has been successful, and it’s also a good idea to find out why the owner is selling in the first place. But if you have checked these and confirmed that the business is a good one, then you have a concept that has already been proven. Also, if you try to secure funding for a business, it’s often easier to get the funding you need if you buy an existing business rather than start a new one which has not yet proven its merit.
You have an existing brand
Buying an existing business does not just mean buying a location – you are, in essence, buying a brand. This means that the people in the community will already know about your business, and all the marketing and promotional efforts (and successes) made by the previous owner will be passed on to you.
A good relationship with vendors and customers
Imagine trying to start your own business from scratch – aside from having to make sure that your business runs smoothly, you also have to pay attention to building a customer base as well as a vendor base. This often takes years. But with an existing business, you don’t have this same difficulty. You are, in fact, purchasing an existing base of loyal customers, and a base of vendors whom the previous owner has probably worked with for years.
A chance to make a profit right away
If you start your own business, you have to take care of all aspects, big and small. This often includes tasks that are not only time-consuming, but none-profit-making as well, such as fixing Internet and communication systems, doing renovations, buying office equipment, and so on. By buying an existing business, the foundation is already there, so you have a chance to make a profit right away.
There are many businesses for sale today in different prime locations, such as Blackfriars, Aldgate, Camden, Belgravia, and others – but it’s also important to choose wisely. Commercial People, specialists in commercial property, have developed an infographic detailing tips for finding the right commercial space from which you can certainly benefit.
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