If you are an entrepreneur dreaming of owning a business, we at The Gibbs Group suggest to you five reasons why you should consider buying an existing business or franchise rather than starting up your own company. In fact, according to a recent article in Southcoast Business Bulletin, extensive data has shown that your chances for success are much higher when you purchase an existing business or franchise for the following reasons:
1. Goodwill: Buying a company that is well established and has a long successful reputation in its community and industry gives you a leg up. You will inherit a loyal customer base that relies on your new company’s products and services.
2. Location: We cannot stress this enough. Location is key, and a well established location is critical to the success of a business and sometimes difficult to acquire.
3. Infrastructure: Just like goodwill, purchasing a company with an established infrastructure will give you a huge advantage. Why not take over and “hit the ground running” as opposed to starting a new business which will take two to three years to “ramp up” to a profitable level?
4. Purchase Price: It is much easier to place a value on an existing business. Plain and simple.
5. Foundation for Growth: Regardless of a company’s past performance, an existing business will provide the opportunity to expand and grow quickly. Your strengths and experience will be put to immediate use to achieve your goals within a more rapid time frame.
Questions? Contact us, we specialize in business valuations plus we have over 40 years’ experience connecting buyers and sellers. Call us today! 612-467-9673
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