Buying a Business Vs. Starting a Business

Want to spend a bunch of money and wait several years to get it back? Start a business. Want to spend a bunch of money and see an immediate return? Buy one.

The greatest advantage in buying an existing business is a financial track record you can take to the bank. Startups can be exciting, but they have their own set of financial risks.

One very good reason to buy a business instead of starting one is that it is usually easier to borrow money to buy an existing business that has positive cash flow.

It's a good idea to list the pros and cons of buying a business versus starting a business. It will help you evaluate your tolerance for risk

When you buy an existing business with a proven track record you are buying an existing cash flow with proven services to a known market. If you run it at least as well as the seller, it pays for itself.

Buying a business can be like starting a business with a big head start. You will put your own personality into it, but don't do it before you let the business teach you what it knows.