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What Are The Advantages of Buying an Existing Business?

The main advantage of buying an existing business, versus starting one from scratch, is that there is existing cash flow (presumably, positive cash flow). Beyond that, there are existing processes, people and resources in place from day one. While these aspects may be improved by an in-coming buyer, the fact that they exist in some fashion accelerates the possible ROI opportunities. Additionally, existing businesses are typically easier to finance. One should also consider the potential of buying a franchise, whether existing or new. For insights on that, we recommend reading our Buying A Franchise 101 whitepaper.


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