The Huge Gamble

Save time and money and reduce your risk by investing in an existing business operation. There are plenty of statistics available that reveal the risk of starting a business, buying a new franchise, or buying an existing business. Without getting into the fine detail and analysis – starting a business from scratch is a HUGE gamble. However, buying an existing business (with existing customers, employees, brand, cash flow, history, trends, professional relationships, management, etc) is a SMALL risk.

Look at the differences:

• If you start a business with passion and a wonderful idea, you have to build it to make it happen. Fulfilling this dream will take some serious commitment, sacrifice, stress, and cash. Do you have the resources to make it work over the first 5 to 7 years? Do you have the experience to hire the right people, handle the accounting and legal issues? Who is going to do the marketing and sales? How long will it take to build revenue to a livable level (be realistic)? Can you handle the lifestyle change of starting a business?
• Buying an existing business takes away many of the risks and heartache of starting a business. As mentioned above, you enter into an existing business with most of the pieces in place and in working order. There are usually things that a buyer may do differently to improve the business, but a buyer can assess an existing business and its history to better understand its ongoing viability and value. Which would you rather have; a business with $200,000 existing cash flow (bought with $100,000 initial investment) or using $200,000 in savings to start a new business (or new franchise) with no customers, no employees AND no Cash Flow?

See your Apex Business Advisor to review current and past business acquisitions to get familiar with the upside of buying an existing business.