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  • Thu, Oct 12 2017
  • Best Rewards of Buying an Established Business

    Best Rewards of Buying an Established Business

    Do you fancy yourself an entrepreneur? While there are many benefits to starting out on your own and building something from the ground up, if you want fast success, you may be better off buying an already established business. Here are some of the perks you will enjoy by buying an existing business.

     

    1. Established Customer Relationships

    One of the hardest things for nay startup is building relationships with customers. Once you have those relationships, you will find much greater success. Buying an established business means you can buy a business that already has those relationships in place. Having a base of customers who already know and trust the business is going to eliminate many weeks of struggle as you get started.

     

    1. Proven Business Relationships

    Not only does an established business have a relationship with customers, but it also has a relationship with vendors and suppliers. It may also have employees who already know the ropes. These types of business relationships will help you get started on the right track.

     

    1. No Costly Startup

    When you buy a business, the startup work is already done. You don't have to invest in your basic office supplies. You don't have to start advertising heavily right away. You don't have to find a location. All of this is already done for you, so you are free to focus your efforts on improving the business so it can find new success. Those startup costs can easily exceed a million dollars, depending on the size of the business, so avoiding them is a wise move.

     

    1. Less Risk to Investors

    If you are going to need the help of investors to purchase or start your new business, buying an established business with a proven cash flow can help make you seem like less of a risk. A startup is easily a money pit, and investors know this. When you purchase an established business, you have proven books and records you can show to your investors. Also, you may be able to work a seller financing arrangement to make the purchase possible with fewer investors.

     

    As you can see, there are many perks to buying an established business. If you are interested in enjoying these benefits for yourself, talk to the team at Legacy Mergers to learn more.