Buying an established business

February 8th, 2016 Posted in Perth Businesses

There are many advantages for the entrepreneur who buys an established business rather than starting from scratch.

First of all, there is a savings in time, energy, and money when buying an existing business. We all know that process of researching and creating business plans and models are so lengthy, but when you buy an existing business, everything has already been done for you.

In addition to that, if there is financing needed for your purchase, it is not as difficult to obtain since a lenders are more likely to finance a business with a proven track record. Not to mention the cash flow most likely will start immediately, rather than in an unknown timeframe when starting a brand new business.

Also, profitability is not in question as it would be in a business startup. An existing business has a solid client base established, therefore maximising the chances of success by the new owner(s) and also is probably producing a decent income.

These are just some of the many advantages you can get when you decide to buy an existing business instead of starting from scratch. However, keep in mind that there is always room for innovation and creativity even though the business is already established.

To learn more about buying an established business here in Australia, check this out: http://www.business.gov.au/business-topics/starting-a-business/Pages/buying-a-business.aspx