If you think buying a business sounds expensive, try starting one.
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.
There are many advantages to buying a business versus starting one. It feels like you pay more to buy a business but the many hidden costs of a startup can actually be more expensive.