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Buying an Existing Business Is Good Business by Cleo Gib

Buying an Existing Business Is Good Business by
Article Posted: 01/11/2016
Article Views: 112
Articles Written: 12921
Word Count: 601
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Buying an Existing Business Is Good Business


Business is booming in the Twin Cities! Brokerage services in St Paul and the surrounding areas are busy helping investors buy and sell businesses. Are you ready to get in on the action? Are you ready to own your own business? Are you already a business owner and feel you are ready to take on a new challenge? Now is the time to put your ideas into action by purchasing an existing business. Buying an existing business is a great way to get your money working for you quickly. Here's why:

  1. The "starvation" period is over. New businesses require large amounts of capital up front to get things going. Phones, computers, raw materials - the list of start-up expenses is large, and the costs are significant. It can take months and even years to cover these costs before a business can turn a profit. With an existing business, the sale is usually structured to provide you with enough cash flow to cover the debt, the expenses, and even pay yourself a salary.
  2. The business concept is proven. When you purchase an existing business, you will already know the business concept behind it works. There is a product that works, and there are customers who will buy it. The product has been tested, it meets all applicable regulations and standards, and is ready to sell.
  3. The business relationships already exist. Customer relationships are there, as mentioned before, but, equally important are the vendor relationships. While your business acumen can certainly bring improvements to all the relationships, customer and vendor, not having to build relationships from scratch is a huge advantage.
  4. The experts are there to help you. You will generally find the people involved with an existing business to be an asset to you as you learn the ins and outs of your investment. The prior owner may be available to teach and train you on all he or she knows about the business. Additionally, an existing business has employees in place who know their jobs. Having someone already in place who knows how to run the business so you can take a vacation is an advantage no new start-up business owners enjoy.
  5. The infrastructure is in place. Like it or not, infrastructure is part of running a business. Accounting systems must exist to manage accounts payable, accounts receivable, payroll, and fixed assets. Taxes need to be paid. You need a website, email, and other IT services to keep your internal systems running and to keep your online interactions working. An existing business will have these support systems up and running.
  6. The focus of your attention can be on growing your business. This benefit underlies all the benefits previously discussed, but is so significant that it warrants specific mention. Instead of spending your time and energy setting up an infrastructure, leasing office space, buying computers, hiring employees, and getting your product ready for sale, you can focus on the business. You can put your expertise to work improving the product, fine-tuning relationships, and creating a company culture that will help your business grow and thrive.
  7. The risk is reduced. This is perhaps the most significant benefit of all. Most new businesses fail. Some say the failure rate is nearly 80%! While buying an existing business is certainly not risk-free, the risk is significantly less than that involved with starting a new business from scratch, for all the reasons listed above. 

Buying an existing business is just good business. Brokerage services in St Paul can help you find a business that is right for you, so you and your money can get to work right away.

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