There is an inordinate level of romance associated with building a business from scratch. Shows like Shark Tank and The Profit only exacerbate the issue.
Though such shows do show the struggles that these business owners face, the very appearance on television creates aspiration:
“I want to do that too.”
First-time entrepreneurs looking to get into business see building from scratch as a great option. Seasoned entrepreneurs know better. They know it’s always easier (and often better) to buy than to build.
Why make it hard?
When you start from scratch, you have to build a customer base, market a new business (with a brand and logo you’ll need to come up with), hire employees, and oh yes, generate cash flow during the runway (the financial amount you can survive on during startup) you have to build the company. Not so with an established business.
They have customers, they have employees, they have procedures, marketing and a brand in place. And yes, there’s cash flow from Day One. It’s even easier to secure financing from a bank, which views an established business as a much safer bet than an untried startup – even more so if the owner has never run a business before.
Lots of choices
You think you know what kind of business you’re interested in, but the truth is, you’ve often not even scratched the surface beyond some daydreaming. Not only are there businesses out there you’ve never even considered existed, but they’re often for sale – and sometimes, in your price range.
If there’s a type of business that you have your heart set on and it’s not listed, we as brokers can go in as a trusted intermediary to see if maybe there’s an openness to selling.
Rather than confine yourself to one specific idea that has to work, you can examine dozens of possibilities and see what really ticks the boxes for you.
Take your time
Buying a business isn’t something that most people do overnight. It’s a process that begins with financial qualification – putting together your assets and seeing what you can afford.
It then continues on with meetings with businesses and owners who truly interest you. And it culminates in an exciting ending: you getting the keys to a business that already works!
Your concern isn’t keeping the lights on, but deciding what to do next.
Will you keep it as is?
Convert it to a lifestyle business?
Scale it to the moon?
A bought business gives you that luxury. A business started from scratch never does. The failure rate among started-from-scratch businesses compared to bought businesses isn’t an apples-to-apples comparison. Heck, it’s not even a galaxy-to-galaxy comparison.
Are you thinking about becoming a business owner? Let us help you as we have helped so many before you. Give us a call today!