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… What’s the difference between buying a business VS. starting 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.