Now that you’ve decided to go into business for yourself, you have an important decision to make. You must figure out whether to purchase a business already in operation or to start your business from scratch. This article focuses on the pros and cons of buying an existing business and considers some of the possible results of your decision.
First, you must consider the stakes involved in your decision. If you purchase a business that fails to thrive, you may find yourself facing financial difficulties and significant stress that can take a toll on your mental health, relationships, and life in general. On the other hand, if you don’t purchase the business, you may miss out on major learning opportunities as well as financial success and personal fulfillment.
As you think about purchasing an established business, you may appreciate that the business is already up and running. You have the benefit of stepping into an enterprise that doesn’t have to be built from the ground up. The business has loyal customers, a known brand, and set procedures. Its products or services are already market-tested, and you may find it easier to get financing for an existing business that has a budget, a business plan, and a record of success. Finally, if you buy a business like this, you have money coming in right away.
On the other hand, though, you may discover some disadvantages involved in purchasing an established business. You may find yourself facing processes and procedures that don’t work very well yet are difficult to change. You may meet with resistance from employees and customers when you do try to make changes. The business may be struggling with a poor reputation, old equipment, outdated technology, and inefficient marketing. It can also be difficult to make an existing business fully yours.
Another thing to consider is how difficult it is to get an accurate valuation for an existing business. You probably need to hire an appraiser to accomplish this, but you can get a general estimate by examining the business’ earnings, looking at the value of assets, and comparing the business to similar businesses in your area.
Even after you weigh the pros and cons of buying an established business, consider what it’s involved to get the business transferred to you and running smoothly. Reexamine the business plan and structures as well as staffing. Think about taking out a small business loan or getting a grant to help with the transition.
Also, think carefully about marketing your new business. You can start by creating a website and social media accounts. Make sure to include plenty of information about your business, including your contact information and hours of operation. You can also distribute flyers and business cards in local businesses and online. In addition, you can hold events and workshops to introduce potential customers to your products or services. You may want to redesign the business logo. Your logo sets your business apart and shows how it’s unique.
When you’re ready to start marketing your business, be sure to connect with the digital marketing professionals at MB Marketing for all your web design, SEO, Facebook advertising, and email marketing needs!
Now that you’ve properly valued the business you’re buying and considered the stakes, pros, cons, and startup issues, it’s time to make your decision. Good luck!