If you have your mind dead set on starting a company from the ground up, that’s a great way to become a small business owner. Many people do it every year, and it can be incredibly rewarding.
That said, there is also the option to buy a business that exists and take over as the new owner. Below are three potential advantages that come with buying an established business:
You already have customers and a reputation
The best product in the world doesn’t sell without customers. One of the major challenges you’ll face is finding people who want your products and building a positive reputation. It can take years. If you buy a company that already has a positive reputation and a steady stream of repeat customers, you’re far ahead of the game.
Many of the systems already work and have been established
You may want to change up your supply line or refine your workforce, but a lot of what you get when you buy a company is already working. It’s already in place. There are not as many unknown factors and risks. Instead of trying to figure out how to make it happen, you’re just trying to improve.
You may be able to secure financing more easily
Trying to get a loan for a business idea is difficult. You have to sell the lender on your speculation. When buying an existing business, you can already point to how much the business earns and how well it all works.
If this is something you’re serious about doing, it’s time to start considering the legal steps you’ll need to take as you enter the world of small business ownership.