pros and cons of buying a business vs starting from scratch
/ / Buying a Business VS. Starting From Scratch
Business Broker Tips | Buying a business

Buying a Business VS. Starting From Scratch

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
PROCONPROCON
Success can be seen. It’s a proven conceptHigher upfront cost in purchasing the businessComplete control over all initial business decisionsHarder, 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 immediatelyCreative freedom to take your business in any direction from the beginningNo 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 verifiedPotential improvements could be vast and time consumingBuilding goodwill as opposed to buying it means starting on a clean slateLack of cash flow means you may not see profit for several years (avg. breakeven is 2 years!)
Financial history makes it easier to obtain financePotential hidden problems may arise with timeInitial costs grow gradually as the business growsThe feeling of uncertainty and risk, second guessing each decision
The brand is already established with goodwill attachedDated processes may require extensive revampingChoosing the right team for the jobForming supplier agreements without reputation and history could prove difficult
A team of staff that already understand business operations are ready to goBad reputation could affect the business’ future, even under new ownershipOpportunity to start fresh and make your mark on the industryThe amount of homework required before you even begin can be extensive
The pros and cons of buying a business VS. starting from scratch

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.

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