Pros and Cons of Buying an Established Small Business

Every entrepreneur dreams of owning a business. For some people that comes from starting a business from the ground up. For other people that comes in the form of buying and growing a small business. There’s no one path to success or to owning a business, owners just need to be prepared to know what buying a business entails.

Sunbelt Business Brokers of Durham connects buyers with opportunities to become owners of business operating and connected with Durham. Our team is brings you the businesses that will interest you, while finding options to make the deal suitable for you. First, future owners should consider what buying a business entails.

4 pros of buying an existing business are: 

1. Established Customer Base. Purchasing an established business means that owners can already count on a customer base that frequent the business. The more loyal the customer base, the better for the business.
2. Existing Trained Staff. Hiring and training staff isn’t only a large cost, it can delay the time before a business can start making money. Taking over a business with experienced staff, saves time and money.
3. Focus on Growth. Where some owners think businesses that are selling because they have some issue, others realize that some businesses became stagnant because the prior owner either didn’t want to or couldn’t grow the business past its current point. New owners come in with new strategies and techniques that can immediately be applied to turn a successful business into a growing brand.
4. Financing Options. Lenders consider business purchases less risky because buyers can provide the lender with a proven track record.

There are many benefits that come with buying an existing business that get owners started sooner on working on the brand or service that they offer. That being said that is not to say there are no obstacles.

4 cons of buying an existing business are: 

1. Higher Initial Cost. Sellers know the value of giving future owners a jump start in the business. Buyers should always expect to spend more buying a business than starting the same type of business from the ground.
2. Conflicting Procedures and Policies. Every business has existing policies and procedures that may not match what future owners envision. These policies and procedures can be changed, but getting employees to adjust can be difficult.
3. Loyal Employees. Continuing with the previous point, employees can be difficult to come around to new management. Employees with close ties to the previous owner may be reluctant to adjust to new procedures so buyers should ensure they can meet with the staff to gain a feel.
4. Location. Moving a business is difficult so chances are buyers will be staying wherever the business is. More than just location, buyers have to evaluate the facility. Depending on the industry outdate equipment or facilities can vary in expense.

Need more help deciding or simply want to know more about the process? Contact our team of experts to learn more about buying your next business.