If you are ready to turn your dream of owning your own business into a reality, you will have many important decisions to make. For many people, the biggest decision is whether you should buy an existing business or start your own. In some cases, this is an easy decision. For example, if you have developed an entirely new product or service, it will almost certainly make sense to start your own brand-new business. If you want to enter an existing market, however, you should weigh the pros and cons of each option before making a final decision.
Benefits of Buying a Business
Purchasing an existing business can be a great way to hit the ground running as a business owner. Since the business is already up and running, you do not need to worry about things like purchasing initial inventory, finding the right location, or even hiring staff. Depending on the type of business you purchase, you may also be able to inherit various types of licenses that are required in the industry you are entering. These, and many other factors, can make buying an established business an excellent opportunity for a motivated entrepreneur.
Challenges of Buying a Business
The downsides of buying an existing business can also be significant. One of the biggest obstacles is that if you purchase a thriving business, you are going to have to pay a premium, which means coming up with a lot of money (often through borrowing). If the business is not doing well, you may be able to get it for a lower price, but you have to overcome the challenge of turning things around and making it successful. Other problems may include things like not being able to choose the location, having to get staff used to your ownership style, absorbing existing debt, and more.
Benefits of Starting a New Business
One of the biggest perks of building your business from the ground up is that you get to make every decision along the way. This makes the business uniquely yours in a way that simply isn’t possible when buying from another owner. New businesses also benefit simply from being new. Many people love trying out new things, which can give you a great surge of customers when starting out. If done well, you can retain these customers and build up your successful company.
Challenges of Starting a New Business
One of the biggest challenges to starting your own business can be that you have to make every decision along the way. Mistakes in the earliest phases of a business can be disastrous, so you need to make sure you think things through. About half of all new businesses fail within the first five years, which is definitely something to think about. If you have never owned a business before, you need to learn every aspect of this process, not just how to sell your product or service.
We are Here for You
When it comes to becoming a business owner, the bottom line is there is no one right way to do it. There have been many successful people who have gotten started by purchasing an existing business, and many that built their business from the ground up. Whichever direction you decide to go, however, make sure you have legal counsel there to help you through the process. Contact Neve Webb to schedule a consultation with an experienced business attorney so we can help make your dream of business ownership a reality.
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