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Owning a business can be financially, as well as emotionally rewarding. However, it also requires a fair amount of time, commitment and energy. If you’re ready to take on the challenge, your first instinct may be to start your own company. While this may be necessary under certain conditions, if for example, you are creating a new market or industry, buying an established business can be a smart alternative to the traditional startup. Likewise, the advantages of this option are often numerous and can save you years of hard work, long hours and start-up expenses. The best way to go about finding an existing business for sale is to work with an established business broker. Cost It’s no secret that launching a business from the ground up often requires a significant amount of money. From commercial property to equipment and marketing, there are essential costs that must be met even before you make your first dollar. If you want to work in an industry that is product intensive, the cost of developing a prototype, manufacturing it and securing a patent could be enough to prevent you from even getting your business off the ground. Purchasing an existing business can eliminate all of these concerns, allowing you to start making money from day one. You may even be able to turn a profit within the first few months; a dream held by many entrepreneurs. Financing There comes a time in the life of almost every business when external funding is needed. The less established your business is, the harder it is to secure this financing. This is often true even if your business is generating income because banks and investors rarely view revenue as an adequate substitute for experience or long term growth. Owning a business that already has a reputation for generating income and repaying its debts allows you to reap the rewards of someone else’s hard work. Often the person you are purchasing the business from is willing to finance some portion of the sale. With this financing, you can get in the door with less additional financing or even use some of the funds you already have to expand into new markets, update old equipment or channel your energy into building a national or even global brand using large-scale marketing. Many businesses are acquired with an SBA 7a business acquisition loan. These loans have reasonable interest rates and terms. Customers Those who have never owned a business often make the mistake of assuming that a great product or service will naturally draw customers. Unfortunately, this is simply not true. You could have the best product or service ever invented but without the right resources, connections and marketing strategies, no one will ever find out about it. When you start your own business from scratch you inevitably take on this risk. In contrast, a pre-existing business comes with its own clientele. These are people who already believe in the company and what it does. You don’t have to research potential demographics, go door-to-door or make an endless amount of cold calls. All you have to do is maintain business as usual. Of course, if you want the business to grow, reaching out to new customers is always a good idea.
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buying an existing business, finance a business, entrepreneurs, own your own business, business for sale, business broker,
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