Question

List three advantages of buying an existing business

Answer 1

Buying an established business means immediate cash flow. The business will have a financial history, which gives you an idea of what to expect and can make it easier to secure loans and attract investors. You will acquire existing customers, contacts, goodwill, suppliers, staff, plant, equipment and stock.

Buying a business is generally considered less risky than starting your own business, especially if you can buy a well-managed, profitable business for the right price. Consider these advantages:

The difficult start-up work has already been done. The business should have plans and procedures in place.
Buying an established business means immediate cash flow.
The business will have a financial history, which gives you an idea of what to expect and can make it easier to secure loans and attract investors.
You will acquire existing customers, contacts, goodwill, suppliers, staff, plant, equipment and stock.
A market for your product or service is already established.
Existing employees and managers will have experience they can share.