There are pros and cons to buying or setting up a business. The latter can take time, effort and, of course, a great idea. While taking a basic concept and turning it into a reality can certainly be a satisfying process, many start-ups fail not long after they get up and running.
The alternative is to seek out a business that is experienced in its sector, and has already laid a lot of the groundwork that can be put towards future success.
A working concept
The International Business Brokers Association (IBBA) found that one of the biggest positives of buying an existing business is the fact that it will likely have a well-established set of products, services and offerings.
Consequently, the IBBA also explained that there are more options when it comes to financing the endeavour. Start-up companies often struggle to find sufficient backing, whereas an existing business has a track record, ideally of success, to show for its efforts.
This is even more noticeable if you're assessing franchises for sale. They have a tried and tested business model behind them, and can offer a more pre-determined route to a positive return than a start-up equivalent.
The power of people
Research published in the North Bay Business Journal explained that buying a business that's currently operating gives you the option of tapping into its people and existing relationships with suppliers.
With the right team in place, it's much easier to establish your own vision for the company, and also introduce growth strategies that will be effective in the long term.
While there's no denying that many start-up businesses have gone on to be successful, those mulling over whether they should pursue a new endeavour or seek to acquire a business for sale may have more luck doing the latter.