Whether you are looking for a stream of income to help you during retirement or a new passion to wake you up in the morning, there are many benefits to buying an established business. Working under a known name may also help ease the jitters of going into business for yourself if this is a first time for you.
Let’s take a look at just a few of the most important benefits of buying an established business.
Most new businesses can expect to run for at least six months without a profit. This doesn’t necessarily have to be the case if you work under an established name brand. When people see a brand they recognize, they associate it with a level of quality that you would otherwise have to build up yourself. You can use this reputation to your advantage and begin creating revenue streams more immediately than you could with a brand new business.
If a business is established, that means you can look over its books to see how it performed in previous periods (you did do this before you bought it, right?). As a result, there is no guesswork when it comes to determining what kind of revenue streams this business can provide for its owners. A new business does not have this kind of track record, so much of the money talk around them is pure speculation that may or may not come to fruition.
If you have a template of performance that you can refer to directly, you can also determine more easily how that template might be improved with a few customizations. Perhaps that is why you are considering buying a certain business in the first place — you see how a few new ideas could add a lot of value to the business. This is good and essential to the growth of industries in general — new people coming in with new ideas. Sometimes the best place to put those new ideas is within the framework of an established business.
An established business has usually already gone through its volatile period. This means the records you see, you can count on. If a business has a good reputation already, it tends to serve as a hedge against volatility during seasons and situations when new businesses might falter. This is why many retirees focus on buying established businesses. There are fewer surprises to be had.
Are you thinking of buying an established business? Let the business experts at Murphy Business help you. Even though you may be dealing with a name brand, there are still many details that a professional should work out at the negotiation table. Please do give us a call at (727) 725-7090 or fill out your query directly on our website form. We look forward to helping you match with the business that serves your needs and the needs of your community, bringing you success and stability without the uncertainty of starting from scratch.