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Why Buy a Business Vs Starting from Scratch?

Written by: George J Sierchio

Article Overview: Not everyone can buy a business that nets the owner $100k+ a year. If that were the case everyone would. But, everyone does have the opportunity to build a business to that level or more. Using your skills, getting help where you need it and using the momentum of the business you purchase is the way to achieve that goal. Being prepared by having all of these items lined up before even looking for a business to buy is extremely important. If not...

Why Buy a Business Vs Starting from Scratch?

Not everyone can buy a business that nets the owner $100k+ a year. If that were the case everyone would. But, everyone does have the opportunity to build a business to that level or more. Using your skills, getting help where you need it and using the momentum of the business you purchase is the way to achieve that goal.

Being prepared by having all of these items lined up before even looking for a business to buy is extremely important. If not, you will waste the momentum you bought and will need to claw for survival or get out quick.

What Are the Odds of Successfully Completing a Business Purchase?
It is interesting and important for a business Buyer to know that the industry average for putting in an offer that is accepted and that offer actually going to the closing table is 50%. Why you ask? Again it comes down to preparation. This time though, it is often the Seller’s lack of preparation that causes the problem.

As this statistic states, not every deal works out. If you are prepared, then you will uncover any possible discrepancies in the Seller’s information during your due diligence of the business. Being well prepared, you will also be able to renegotiate after these discoveries or walk away and be happy with that decision.

How Can I Make Sure That I Have Made the Right Decision to Buy vs. Build a Business?

Once you know what kind of business you want to be in, deciding how you will achieve the goal of being a business owner is extremely important. Buying a business instead of starting from scratch is a statistically better idea. BUT… it means very little if you are not a prepared/educated Buyer, which includes getting help from people with experience in buying and operating a business.

Be mentally, physically and monetarily prepared to buy a business or start one from scratch. This will allow you to go with your gut and your heart to know you made the right decision on the path you have taken. If you don’t have a fire in your belly over this exciting decision to be a business owner, then you have made the wrong choice. It’s that simple.

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Article Tags: buy a business, starting business from scratch



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