Buying a Business Vs. Starting a Business

There are many points of view on whether to start or buy a business and each has pros and cons. Make your list and evaluate your own appetite 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.

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.

When buying a business, don't let your excitement drown out the voice of your intuition.

In our experience the success rate of buying and continuing an existing business is many times that of a startup.

There are many points of view on whether to start or buy a business and each has pros and cons. Evaluate your own appetite for risk.

Buyers should ask the "barrier to entry" question… is it cheaper and more efficient to start your own business or does a particular opportunity offer you a sufficient leg-up to warrant purchasing a business instead?

Experience can be your worst teacher, unless it's somebody else's. Try buying a business that has already had some experience.

Buyers have to ask the "barrier to entry" question… is it cheaper and more efficient to start your own business or does a particular opportunity offer you a sufficient leg-up to warrant purchasing a business instead?

Organic growth can be expensive, consider a strategic acquisition to grow your business.