Wanting to dive into the entrepreneurship waters can be an exciting but, at the same time, challenging journey. Everything starts with an idea, but from that point on, there are countless other steps you’ll need to take to ensure you have a successful business.
Many people in this industry have considered starting a new business the golden standard. That said, buying an existing one is also an option. There are currently over 33 million companies in the US, and a certain number of those are available for sale, meaning there’s a lot to choose from..
With this in mind, should you start a new business or buy an existing one?
Starting a New Business
This process is considered a blank canvas, allowing you to create a company based on your vision, which is why many people take this route.
Advantages of Starting a New Business
It doesn’t matter if your business idea is the first in the world or one of the most common ones; starting fresh can be a good approach. This will allow you to build a brand identity as you see fit. During these steps, you can implement processes and hire people you want and believe are a great fit for the company.
When done right, a new business can quickly thrive, allowing you to see success earlier than expected. This is where your creativity can come into play. As you build the business, you’ll try different things, aiming for specific potential clients and creating a brand identity that you think will sell. There may be some obstacles along the way, which is to be expected when starting fresh.
Disadvantages of Starting a New Business
As ideal as it seems, there are some disadvantages when starting a new business. The first and most important is that if this is your first business, you’ll have a steep learning curve. There may be some steps along the way you’ll miss, which can devastate the growth. Sure, you can research and find all the information you need, but there are still some things or activities you’ll need to do.
In addition to that, you should also consider that success doesn’t come overnight. Getting things right will help you grow your business and have many clients, but you shouldn’t expect that to happen instantly. Building a company from the ground up requires dedication, time, and much effort.
Buying an Existing Business
The second option for businesses is to buy an existing one, which, like the previous approach, has some advantages and disadvantages.
Advantages of Buying an Existing Business
Several advantages make buying an existing business an excellent option, especially for people just getting into business ownership. This option helps you bypass many of the steps when creating a company. As a result, you’re just picking up where the previous owner left off. In addition to that, like most business owners, you’ll start to make a profit immediately, mainly because the business already has clients and is making money.
The best part is that the purchasing process is quite simple. The approach is like a marketplace with companies like Find Businesses 4 Sale and many others. Find a business you like, and that is within your budget, purchase it, and continue working. Keep in mind that there are some failing businesses that you can purchase. These can be a good option if you want to save money and have a plan for picking up the pieces.
Disadvantages of Buying an Existing Business
At first glance, getting an existing business seems like the best course of action, but it has some drawbacks. The main one is having no input into the brand identity and how the company was built. You may have some ideas about how you want the company to look, but it doesn’t necessarily mean it will be the same as the business owner who created it. While there are ways to move the company in your desired direction, it will take some time.
Practices and employees are another aspect you may find less than ideal when buying an existing business. Buying a company that’s older or owned by someone who doesn’t utilize modern technologies means you’ll need to work a bit to get it up to speed with everything new. The employees are the second part you’ll need to consider. You’ll need to introduce some changes, so some of them may not be too happy with it, meaning it may take some time to get it running as it should be.
Owning and running a business is an eventful adventure, filled with many activities and obstacles that you’ll need to overcome to ensure its success. When it comes to owning one, you have the option to build it from scratch or buy an existing one. Both have their pros and cons, so choose the option that works best for you.
