05 Jun Why buy an existing business?… and why starting a new business is dangerous to your health?
Why buy an existing business?… and why starting a new business is dangerous to your health?
If you buy a going-concern business, you can see what you are getting. Lease, licences, plant, staff, suppliers and customers are all there, and figures are available. You are making money from the moment you open the door.
When starting a new business you have to organize all these things – location, lease, licences, suppliers, marketing, staff (hiring and training) – with money going out all the time before the first customer comes in.
Most start-up business fail. To succeed you have to have a good new idea / product, a business plan, and more money than you expect you will need. Experience tells us that starting a new business takes more time and money than anticipated – and it also takes GRIT, i.e. guts, staying power, patience, and persistence.
All businesses start small, but only a fortunate few survive. Your safe bet is to buy an existing business, one that has survived.