Having your own business is appealing to many people. Being your own boss, starting your own company, working towards making it grow and develop takes time. Forming a new start-up is one way to achieve your business goals or purchasing an established business is another option.
Is purchasing an existing business better?
An established business means you can take over and hit the ground running from day one. Instantly you will have income. Typically, it takes some months for a new business to start producing profit.
Purchasing an existing business will enable you to have a steady income. Hence you can re-invest in the business to improve it as much as possible. A new start-up will mean investing a good portion of money to acquiring new resources in order to get the business going.
Automatically your business will have access to customers from the previous owner. Therefore, you can develop good relationships with these existing customers. Effective marketing strategies can be applied in order to grow your customers base. The main advantages from acquiring an established business is an existing customer base, connections with suppliers and access to employees. Potential employees that are already working for the business, know how it operates. This will save a huge amount of time and costs searching for new employees and training them.
Risk is significantly reduced with a founded business that has been around for a while. As a new owner, your main focus can be on growing the business and concentrating on the areas that require more attention. Whereas a start-up will require owners focusing all their efforts into getting the business going which will take a lot of time and energy.
Assuming the established business is doing well it can be less risky financially and safer for the new owner. Previous financial records will covey a better picture of how business was and is currently operating. Whist with a start-up it will take time to see how business will operate and the direction it will take.
Initially the costs to purchasing an existing business will be much more than a new start-up. Purchasing a business will make it easier to calculate risk, which reduces possible failure of a new start-up.
If you would like to find out more on setting up a new business or purchasing an existing business in the UAE and GCC contact Synergy for a free consultation call +971 456 37300 or email firstname.lastname@example.org