Buying a Business FAQs

Buying a Business FAQs

What are the advantages and disadvantages of buying a business?

* Advantages: Among the many favorable aspects to buying an existing business is the drastic reduction in startup costs. In addition, cash flow may be immediate because of existing inventory and receivables. Other positive effects include existing goodwill and easier financing opportunities, assuming the business has a positive track record.

* Disadvantages: Among the biggest downsides to buying a small business is the initial purchasing cost. As developing the business concept, customer base, brands, and other fundamental work has already been done, the costs of acquiring an existing business may be greater then starting a new business. Other possible disadvantages include hidden problems associated with the business and receivables that are valued at the time of purchase, but later turn out to be noncollectable.

Does the SBA offer any help in buying a business?

* SBA no longer offers Property for Sale through the administration of its loan programs.

Author:.

Starting a business requires you to complete a number of steps and make some key decisions. Though part of your overall plan, you’ll need to select a location, decide on a business structure, and obtain the necessary licenses and permits. In addition, determining which financing options will meet your short-term needs and long-term goals is crucial. Within this section, we’ll provide information on these topics along with guidance on buying an existing business, copyright and trademark issues, ...

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