Did you know that 65% of new businesses fail within the first ten years, and only 25% make it beyond fifteen years? If you’re thinking about starting your own business, these statistics may not fill you with confidence.
There is another way, however: buying a small business that’s already up and running. Read on as we take a look at some great reasons why it makes sense to buy a small business.
1: Immediate Cash Flow
One of the major benefits of buying a small business is that you can start earning money from day one. When starting up a new business, it can sometimes take a year or more before you start making any profit. With an up-and-running business, you should be able to start making a profit from the moment you take over. No longer do you have to put up with the frustrating position of working hard but seeing no reward.
2: Ready-Made Customer Base
When buying a small business, you’re also buying into their customer base. If you buy a franchise, for example, then there is already a core base of customers who know and love the brand. They’re ready and waiting for you to tap into. Instead of expending all your energy building a customer base as you would with a startup, you can focus on satisfying your current customer base, and expanding it.
3: Employees Know Their Roles
When you start a business from the ground up, everybody is learning on the fly. You’ll need to teach your employees exactly what you expect from them. This isn’t always that easy, since you might not yet fully understand what you need from them yourself.
When you buy a business, you’ve got a ready-made set of employees who have experience in their roles and already know what they’re doing. That means you won’t need to hold anyone’s hand and can focus on making the business a success.
4: Less Risk
As we saw at the outset, starting a new business is a risk that’s more likely to ultimately fail than ultimately succeed. That can make it hard to get funding for your business. Investors are fully aware of the risks involved with startups.
You’re far more likely to get investment in a business that’s already a going concern, such as a glass business opportunity, than you are with a business that needs to be built from scratch.
5: You Can Focus On Growth
Starting a business is hard. You’ll need to wear multiple hats and pour blood, sweat, and tears into the business just to keep it afloat at the outset. When you buy a business, such as by looking for cheap franchises to buy, you don’t need to work on getting the business established. Instead, you can devote more of your time to helping the business to grow.
Are You Ready to Buy a Small Business?
If you’re ready to buy a small business then we hope that this article has given you some insight into the benefits. Starting your own business is hard work, and the statistics aren’t in your favor. By buying an existing business, you take away some of those risks, leaving you to concentrate on the important task of helping your business grow. If you’re looking for more useful business information, be sure to check out more of the site.