Reasons to buy a Business for Sale than Start a New one

Most of the people prefer the availability of the small scale business ventures that can ensure sufficient income on a periodic basis without the p...

  • Reasons to buy a Business for Sale than Start a New one
    Manish Khanna Image Manish Khanna

    Reasons to buy a Business for Sale than Start a New one

    • Thursday 12th of February 2015
    • Strategy

    Most of the people prefer the availability of the small scale business ventures that can ensure sufficient income on a periodic basis without the pain of managing large size corporations. It makes them feel independent and the master of their financial fate.

    But if you look at the stats of what happened to the individuals who decided to set-up their venture then it may petrify you! The mortality rate of the new business ventures is pretty high despite the indifference of the business environment offered by the governments for the new business owners in different parts of the world.

    It is a fact that more than 50% of the ventures perish within the first three years of their inception. The 70% of the ventures vanish from the market within the first five years of their inception and only the business environment provided by the local bodies is not accounting for one such condition. There are some of the internal reasons as well that eventually doom a business. These include poor management style, obsolete business ideas, inadequate operating capital, inability to create a robust customer base, etc.

    So, is there an ideal solution to this kind of a problem?

    Well, indeed, there is! You can buy a business instead of starting a new one. Buying a business bestow you with numerous advantages. Some of them are-

    Instant cash flow

    Due to the availability of an established customer base, it will not be hard for you to attain an immediate flow of cash. Starting up a new venture always initiate hard days as you are required to attract the prospective buyers to your new venture. And why would they? You do not have a robust portfolio, you do not have a sound goodwill in the market, and you do not have the support of customer referrals as well. It is quite a catch 22 situation.

    You will need not to face these kinds of issues with a business for sale.

    You will get an edge with the seller financing

    When you are buying a business instead of starting a new one, then you can make a proper utilization of the vendor finance. It is important for endorsing the larger segment of your purchase budget and reach the zenith of your buying potential.

    You can procure trained employees in advance

    It is an undeniable fact that once the business belongs to you, so will be the employees. Both the seasoned and veteran employees of the company can rescue you against the early bumps of the market. Besides, having insider information always aid in evaluating the standing of the business in the market.

    Your credit facilities, suppliers, permits and existing licenses are in place

    All these are vital to the successful running of a business in the market. As your vendor of business has already improvised these factors, so all you are required to do is get along with them and add new agencies and bodies as per the growing needs of your purchased venture.

  • Author Info Manish Khanna

    Manish Khanna is a serial entrepreneur, philanthropist and genuine Australian success story. In a decade he has built an online empire unlike any other. He is currently the Managing Director of more than 10 individual companies. These include the flagship Business2Sell which operates internationally in 6 countries. The others include CommercialProperty2Sell, Million Dollar Mansions, Netvision, BCIC Pty Ltd and Better Franchise Group, to name a few.

    With more than 21 years’ experience developing web applications plus very successfully creating, managing and growing start-ups, he is forging ahead to turn more of his innovative ideas into future success stories.