If you want to own your own business there are basically two avenues to make that happen. You can start your own original business from the ground up or you can purchase an existing business. The path you choose will depend on many factors that relate to the risks involved in starting a business versus the risks for buying one.
In general it’s probably easier to buy an existing business. The concept, location and operating procedures are all proven because the business is currently open and running. The employees have already been hired and trained, the licensing and permits needed have already been approved, the inventory or goods for sale will work because they are currently selling – you get the idea. A tried and true method almost always works better than an unknown.
If it’s easier to buy a business, is it always a better choice than a start-up? No, it depends on what your vision for business ownership is.
You might be someone who just wants the flexibility and control business ownership affords you, and while you do have industries and types of businesses that would suit you in mind you aren’t stuck to one particular idea of how a business must be. Good financials, a good location, a good reputation – these are the things that matter to you. If your desire to be a business owner is born out of wanting to reach life goals but the path doesn’t need to be a certain way – purchasing an existing business is probably the right idea for you.
On the other hand if you have an entirely new business idea and the means to bring it to fruition coupled with needing that business to be exactly the way you envision it – a start-up is likely a better route.
A caveat to the start-up route. Say your dream is to open your own café to sell the baked goods from your grandmother’s recipes and coffee. Sure, you could find an empty commercial space and build it out to your liking – but you’ll have no idea if the location and concept are going to work. A likely safer bet is to find and purchase an existing café that is similar to what you envisioned and then make small changes (after you’ve run it for a while and have a gauge on what your current clientele will accept as far as changes) until it’s exactly the way you want it.
Whichever path you think might suit you a great first step is to have a conversation with an experienced and qualified business broker. They will be able to point you in the right direction, either by finding you listings that would suit your needs or by referring you to a commercial agent to find your new space.
Do you have a vision for business ownership and aren’t sure which path is right for you? Would you like to know what businesses currently for sale might work for your goals? Ask us! Leave any questions or comments and we would be happy to help.