7 Advantages of Buying an Existing Business

With 28 million small businesses open today, now may be the perfect time to invest in your own. As you begin taking the first steps to business ownership, it’s wise to think about the benefits of buying an existing company. Continue reading to discover the advantages of buying an existing business compared to starting your own.

Benefits of Buying an Existing Business
Before becoming a business owner, explore the benefits of buying an existing business to ensure you make a well-informed decision.

  1. Low-Risk Investment
    Buying an existing business is considered a low-risk investment compared to starting your own business from scratch. With a new company comes costs from real estate, hiring new employees, education and training, equipment, furnishings, marketing, and more. Unlike a new business, an existing business may include most of these in the asking price, depending on the transaction. Plus, banks see buying an established business as low risk because the company is a proven success, unlike new businesses that can be experimental.
  2. Current Staff
    When buying an existing business, the employees that are loyal to the company will most likely want to see it succeed. You won’t need to train them, and they can help you along the way if you are new to the industry. In addition to a well-trained staff, existing employees can also provide key intel into the overall business operations. Their experience working with the previous owner can shed light on the positives and the negatives of the company.
  3. Expertise
    If you’re not already an expert in the company’s industry, buying an existing business is a great way to learn the ropes. Both the staff and previous owner are excellent sources of information and insight, so it’s best to keep an open line of communication when going through the process.
  4. Established Clientele
    Along with the employees, loyal clients and customers will want to see the business succeed as well. These customers will have the insight to help you improve the company, so be sure to research their experiences to see how you can enhance their future ones.
  5. Furnishings and Equipment
    In most business deals, the transaction includes the real estate as well as furnishings and equipment. If a deal doesn’t include these items or if you’re starting a new business, expenses can add up quickly. The best way to ensure you’re making a wise investment is to consult with a business broker or another professional to help explain the listing details.
  6. Thriving Business
    For new business owners, the first 18 months of ownership is the most critical. By purchasing an existing business, you are investing in one that has likely already made it past this point. Your company’s success depends on multiple different factors, but knowing you’re investing in a business that beat these odds is a tremendous advantage to any new business owner.
  7. Entrepreneurial Freedom
    Buying a business may not sound as thrilling as starting your own from the ground up, but you can still implement all of the creative ideas you have. Once you invest in a business and the deal is done, you can make it into your own.

Buying an existing business can be just as challenging and rewarding as starting your own. Be sure to do your research when thinking about investing in a business to discover your best options. Contact your local Sunbelt Business Brokers office if you are in need of guidance at any point throughout the process.


Brian Knoderer

Brian Knoderer is the President of Sunbelt Business Brokers. He has over 20 years of experience as a business owner and managing business transactions. As a seasoned intermediary, Brian has successfully represented companies in a broad range of industries helping business owners achieve their desired exit strategy or growth initiative.

Brian is also co-owner of Sunbelt Indiana and Managing Director of MMI Capital Partners, a franchisor focused investment banking firm.

Previously Brian was involved in several entrepreneurial ventures as well as having held corporate roles in Franchise Development for Prime Hospitality and Choice Hotels.

Brian is a graduate of Ball State University with a degree in Management Information Systems and earned his MBA from Butler University. He has received the Certified Merger & Acquisition Advisor (CM&AA) designation, holds both the Series 7 – General Security License and the Series 63 – Uniform Securities Licenses, and is a licensed Real Estate Broker. He has been affiliated with several organizations including the Entrepreneur Organization, a Member of the International Business Brokers Association, Venture Club, and a Board Member of The Entrepreneur Institute.

Sign Up For Our Free Business Insights

    Subscribe to receive valuable buyer information, seller information, or information on both.
  • This field is for validation purposes and should be left unchanged.

Sunbelt is proud to be the world’s largest business brokerage network. Each of our offices is independently owned and operated by an experienced and professional owner who lives and works in the community in which they operate.

Disclaimer: No salesperson, field representative or other person has the authority to make a statement, promise or assurance concerning any matter related to the franchise that is contrary to, or different from, the information/terms contained in the Franchise Disclosure Document/Franchise Agreement. Any such statement, promise or assurance is unauthorized, unwarranted and unreliable. If you believe someone has made an unauthorized statement, promise or assurance to you, please contact Jessica Czekalinski, Esq. at 216-674-0645 ext. 619.