Experts recommend that entrepreneurs, when opening their commercial project, pay attention to such an opportunity as a ready-made business for sale. At the same time, it is necessary to systematically approach the issues of assessing the value of a business, revealing veiled problems and identifying risks.
Here are the main arguments why it is better to buy a ready-made business than to start a business from scratch
- As a rule, the creation of a new business takes more money than planned in the business plan.
- A ready-made business is already at the payback stage and there is no need to subsidize the stage of bringing the business to the breakeven point.
- Guaranteed to create a successful business, with established business processes, motivated staff and a payback of more than 30% per annum – this is an entrepreneurial gift that not everyone can do (you can use it).
- High statistical probability of failure when starting a new business due to various risks at the inception stage.
- It is more likely to attract additional funds for the development of a ready-made business from private investors and banks compared to a startup.
- With an existing stable business foundation, it is much easier to develop and implement new development directions, new business processes.
- Ready-made business already provides for the presence and loyalty of regular customers, which confirms the reputation of the business and is an important factor in attracting new customers.
- From the moment you acquire a profitable business, you immediately begin to recoup your investment, because a ready-made business already brings cash flow.
In addition, one of the main reasons for buying is also the desire to remove technological costs in the production chain. For example, there are a number of links in the work of many companies. These are transport companies, legal and marketing firms. When one of the links in the work of the enterprise becomes too costly, a businessperson often decides to buy one or another company that accompanies his main business.
There are more than enough reasons to buy a ready-made business. In this case, the buyer receives an already created structure. He does not need to look for premises, purchase special equipment, look for a qualified person, suppliers and customers. Often it is a profitable enterprise. The new owner can focus on developing and maintaining competitive advantages. Investments in this case will begin to pay for themselves instantly. This fact appeals to the majority. In addition, the former owner of the business will help you sort out the details and nuances. It is not necessary to be a professional in one direction or another in order to manage a ready-made business. Usually all processes are debugged.
The ready-made business market is full of offers, so there is plenty to choose from. It is clear that it is not worth buying a project without a total check and analytics of the prospects for the direction. This issue must be approached as responsibly and scrupulously as possible. Examine the performance over the past few years and the reputation of the firm. An even better option would be to contact specialists who work in this environment and who know the main legal elements of various jurisdictions.