If you buy a business, you get what someone else has put together. You are buying the location, premises, equipment, stock, customers and goodwill that have been established by the seller. That can make it much easier to get started—but you could be buying a lemon if the seller’s original decision to start the business was mistaken. There are potential advantages and disadvantages if you decide to buy an existing business.
Advantages of buying a business
You will receive immediate income from sales to existing customers.
You will save the time and effort needed to equip and stock the business yourself.
A successful business will have a proven location and established relationships with suppliers and creditors.
Buying a going concern as a package may turn out to be cheaper than trying to assemble all the bits and pieces of your self.
It is much simpler to finance a single purchase transaction and a proven track record makes Read the rest of this entry »
