Some Florida entrepreneurs dream of starting their own business. Owning a company may be your dream as well. However, the prospect of forming and nurturing a business might intimidate you. There is another option. You may buy an existing business instead.
Entrepreneur goes through a few reasons why some people decide to acquire a business rather than build one from scratch.
The business is already in place
With an existing business, you have employees, policies, operation procedures, signed contracts, inventory, a customer base, just about anything a business needs to function. If you form a new business, you would have to build all of these pieces from the ground up. Buying the business means you can keep the existing operation in place and benefit from it.
You may earn profits faster
Buying a business may help you profit from the first day of becoming the new owner. If you start a new operation, you have to sink money into buying a business location, inventory, production equipment, plus you have to consider unexpected expenses. It may be months or years before you turn a profit. Purchasing a new business gets you over these hurdles almost instantly.
You may find a stable business
You might not know if a business can stand up to economic forces like a recession. You could sink a lot of money into a new enterprise only to see it fail in an economic downturn. As an outsider to an existing business, you can track its performance through bad economic times and determine whether it is a good prospect to last when times become tough.
You may save money
Buying an existing company may put less of a burden on your bank account than financing a new business. This is because many entrepreneurs finance a business purchase without tapping into their own funds. Some assume control of a business and then use business profits to pay the seller the purchase amount over time. Entrepreneurs can also buy a business by purchasing most or all of the company’s stock.