Want to be your own boss, work for yourself, establish a business and watch it grow? Then you’ve probably asked yourself this question already… Should I buy a pre-existing business or start from scratch?
It’s a valid question and an important one at that – as there are pros and cons to consider for each option. So, make things a little easier to digest, we figured it best to break them down for you!
|Buying a Business||Starting From Scratch|
|Success can be seen. It’s a proven concept||Higher upfront cost in purchasing the business||Complete control over all initial business decisions||Harder, longer hours upfront in establishment phase|
|Reduced start up time & lower establishment costs. Profits from day one!||Lots to learn – you’re stepping in and learning everything immediately||Creative freedom to take your business in any direction from the beginning||No one is there to guide you and there’s no benchmark to compare against- risk it may not work|
|Customer base and supply chain already exist and can be verified||Potential improvements could be vast and time consuming||Building goodwill as opposed to buying it means starting on a clean slate||Lack of cash flow means you may not see profit for several years (avg. breakeven is 2 years!)|
|Financial history makes it easier to obtain finance||Potential hidden problems may arise with time||Initial costs grow gradually as the business grows||The feeling of uncertainty and risk, second guessing each decision|
|The brand is already established with goodwill attached||Dated processes may require extensive revamping||Choosing the right team for the job||Forming supplier agreements without reputation and history could prove difficult|
|A team of staff that already understand business operations are ready to go||Bad reputation could affect the business’ future, even under new ownership||Opportunity to start fresh and make your mark on the industry||The amount of homework required before you even begin can be extensive|
Want to discuss your business purchase options with a professional who understands? Contact Core Business Brokers today, on (02) 9413 2977, or email Roy at [email protected]. With decades in the industry, our team will help weigh the pros and cons and allow you to form a plan to suit your individual goals and needs.