Many business owners start their company and build the entire business from the ground up. You hear a lot of stories about major corporations that started in a garage or a basement.
But you have another option if you’d like to be a business owner. You don’t necessarily have to start a company. You could buy an existing one. What are some of the benefits of buying a business?
You already have name recognition
First of all, buying an existing business means that you’re going to have some level of name recognition in the local area. People will already know that the company exists and some of them will have experience with your products or services. You don’t necessarily have to work quite as hard at building a reputation or a customer database.
You can benefit from the prior owner’s mistakes
Another benefit is that you can see what works and what doesn’t work at the company already. You may quickly see the mistakes that the other person is making and how you can rectify them to make your company more profitable.
You can acquire a lot of assets
Finally, there’s the benefit of buying assets along with the company. You’re not just getting the name and the branding. You’re also getting products being held in inventory, buildings and office space, machines and raw materials, and much more. This will obviously differ quite a bit from one business to the next, but you’re going to acquire a certain amount of assets. You may also get trained employees to work at the company.
That doesn’t mean that buying a business isn’t complex, however. We help businesses dealing with purchases and buy-sell agreements, contact us for a consultation.