Buying a Business vs. Starting a Business

If you are ever talking with someone who is debating over whether they should start a new business or buy an existing business, tell them to call us before making that decision. We can help you think it through.

Starting a business from scratch is not easy. It requires a lot of cash to be able to survive. Your start-up expenses are high before you ever make the first sale. There is rent to pay, build-out of the interior, signage, equipment to buy, employees to hire and train, and advertising before you have the first customer.

When you purchase an existing business, customers are already patronizing you. They know where your location is, there is name recognition, and you have cash being generated to pay the bills.

Most start-up businesses fail, not because of a lack of effort or enthusiasm, or because they don’t have a good product, or a good idea. It’s because they run out of cash. Cash to pay expenses…….cash to pay for inventory, supplies, rent, salaries and wages, advertising, and everything else to pay for when you are in a start-up. 

So, why are so many people attracted to start from zero? We’ll discuss that next week.