We all know the stories of the truly great entrepreneurs who started with nothing and built a business empire from the ground up. Does this really happen? Sure, we know it does, but this scenario is hardly the norm. Depending on where you find your statistics, a very large percentage (sometimes 75% or more) of startup businesses fail before their 5th year.

Why does this happen? The business world is tough, and startups are expensive. Any brand new business is gambling on an unproven product, an unproven business model, unproven operating methods and an unproven location. Many budding entrepreneurs simply see starting a business as finding a space and letting the rest fall into place. What they fail to see is balancing the enormous expense of opening a new location (lease costs, build-outs, equipment, furnishings, inventory purchasing, permitting, licensing, etc.) and then saving enough capital to make it the six-month average that it takes a new (and successful) business to start turning a profit.

Should the scary world of startups keep you from becoming a business owner? Absolutely not!

One of the best ways to enter the world of entrepreneurship is to buy a business that has already passed the startup test. If the doors are still open and better yet if the business is a success, then the initial hurdles have already been jumped for you.

What if the reason I want to own my own business is because I want to create something that is uniquely mine? You can accomplish this easily by buying an existing business. Here’s how:

Let’s say you have a really great restaurant concept. Instead of building an entire restaurant infrastructure from scratch, you can buy an already proven location that is fully equipped, furnished, licensed, staffed and stocked. When you take over the restaurant (and after you are careful about decisions on changes, see The Over-Confident Buyer: Why You Should Take Baby Steps With Your New Business) you can begin to implement your own concept over time. You will save yourself the money and the headaches of starting from scratch.

If you still are not convinced that buying an existing business is for you, talk with an experienced and qualified business broker about the difference in expense for a startup versus an existing business in the industry you are considering. A broker will also be able to talk to you about the difficulties of obtaining a location, the necessary permits and licenses, etc.

If business ownership is something you would like to see in your future, then an existing business can be a great option. Want to see what’s currently out there? Try our search page to see what kinds of businesses are available and then talk to us about the businesses that interest you.

Are you still not sold on the idea of buying an existing business? Do you have questions about how the two options for business ownership compare? Ask us! Please feel free to leave a comment or question here, and we will be happy to help.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com