Buying an Existing Business vs. Starting a New One

Have you decided to become an entrepreneur? Then you need to choose: start a business from scratch or buy a ready-made company. Let's figure out the advantages and disadvantages of both options.

Benefits of Starting an Enterprise on your Own

Starting a business is always associated with spending: material, temporary, moral. Get ready for the fact that it will take a long time to delve into, and real profit will not appear immediately. This does not mean that you will certainly have to knock on closed doors for months. But you definitely need to be patient and show dedication.

If you do everything yourself, then you gain valuable experience. You will understand all aspects of your company. This means that if your business grows in the future, then control over individual branches will be easier. The operating principles of the companies are generally similar. After all, everywhere you need to keep accounting, personnel, look for clients, do marketing. With this knowledge, you will be able to start businesses in other areas. And even if your business has to be closed for some reason, you will know exactly how to start a new one.

It is crucial that you will know your enterprise from the inside, with all the problems and prospects. Besides, you need to always stay aware of all the innovative trends in the niche you are going to work in and in the country where you run your business, be it Nigeria or South Africa. If you have decided to work in Forex Trading offering services as a counselor, aside from the relevant education, you will need to spend a lot of time on sites of the market leaders like Forextime. Only in this way, you will be able to provide your clients with recommendations on CFD trading, commodities, and stocks.

Disadvantages of Starting a Business

Starting from scratch is always a risk. Because it is difficult to take everything into account when drawing up a business plan, sometimes there are unforeseen expenses. Investments do not pay off immediately either. So, get ready for several months, and sometimes years, of work to make a profit.

• If we talk about time, then be ready to devote a lot of hours when building a business from scratch. This is the execution of documents, and the search for premises and employees, the development of a client base. That is why startups are often postponed.
• Because of the lack of experience, many businessmen make mistakes. Of course, it may happen that you get lucky. But statistics show that only 10% of aspiring businessmen achieve success the first time.

Buying a Ready-Made Business

The main advantage of such an investment is accurate calculation. After all, the company is working, the employees are hired, and the client base has been developed. You just have to maintain and improve the state of affairs. Of course, the development of a company also costs money, but much less than starting all over again.

• If the company you are buying has a good reputation, then you may not worry too much about acquiring new customers. Word of mouth works well in every country.
• Searching for employees takes a lot of time and effort. And when you buy an existing business, you immediately have a whole team at your disposal, ready to work.
• You get profit from the existing business immediately. You just have to ponder over its increase.

Why are they selling a ready-made business?

The company being sold is not always unprofitable. Sometimes the owner decides to move to another country, create a new business, or is simply tired of working in this area.

Pitfalls of a Ready-Made Business

The real problems of the firm are not always on the surface. Therefore, before buying a company, it is worth hiring a competent specialist who will conduct a thorough audit. A close-knit team does not always share the views of the new management on the company's work. Therefore, be prepared for the fact that some workers may leave.

Summary

If you have organizational experience, knowledge of legislation and accounting, you can try to delve into the work of an established company. But keep in mind that a profitable turnkey business costs a considerable amount of money. With a modest budget, you still have to try your hand at organizing a business. And we wish you to get into the lucky 10% of beginners and, at the same time, successful entrepreneurs.