The benefits of buying an existing business

Buying an existing business with a recognizable brand is like running a marathon which has already been half-run for you by another athlete!

When we reexamine and recall from our memory the majority of companies that we have worked with, we can easily conclude that often the purchase of an existing business is a wiser option compared to creating a new one. Below, we list several of the advantages that existing businesses bring:

  • Existing cash flows
  • Reputation and customer base
  • Market share
  • Proven business model
  • Existing spaces and infrastructure
  • Suppliers and trained staff
  • Saved time
  • Technical knowledge and experience
  • Saved resources


Existing Cash flows


As is well-known, in business, cash is treasure. For the owner of a small business, it can be the difference between profit and bankruptcy! Just imagine starting the job of your dreams only to find out that you will need two to four years before it becomes profitable.

During this time, how will you pay your bills or invest in your business so that it grows? This is how many new businesses fail. They begin with passion but get frustrated by financial realities.

When you purchase an existing business, there are already (sales) cash flows. Generally, with an existing income, you will have one less factor causing you stress and preventing you from establishing your business successfully.


– Reputation and customer base


A business that has been operating for years has already created a community of people who know, recognize and trust it. We tell all of our customers that in the current time when there is such a battle for any bit of publicity and recognition, purchasing an existing business with a recognizable brand is like running a marathon which has already been half-run for you by another athlete!


– Market share


If you decide to purchase a business which has already been on the market for years, there is a real possibility that it has strong sales and possesses a significant share of the market. If the owner and employees are being paid properly while also maintaining the natural operation of the business, this means that we are dealing with a healthy business that has a constant stream of customers and sales.

If you decide to start a new business, you will have to consistently invest time, money and effort into marketing strategies. While you wait for your business to become known and begin to build a customer base, your bills will still need to be paid. All businesses require some amount of startup capital in order to operate but this is especially so with recently established ones.


– Proven business model


A business that has been operating on the market for years has essentially already a proven business model. When you have a recently established business, you are betting on the idea that customers need the product you are selling but without really knowing the true demand of the market for it. On the other hand, an existing, well-established business has proven that customers are buying and will continue to buy its products. This is why the business has been successful. 

As business owners, the fewer reasons for anxiety you have, the better your situation will be. In attempting to start a new business, you will have to shoulder the burden of making sales and maintaining sufficient cash flow while also training your employees so that they can meet the demands of their employment as well as to constantly be on the lookout for trustworthy suppliers. All these things can lead to complete exhaustion and potential failure, which no one wants when they are attempting to make something of their own. You can avoid all of this stress if you simply consider purchasing an existing business instead of trying to create something from nothing.


– Existing facilities and infrastructure


Compared to newcomers to the market, one of the most attractive features of an existing business is that it already has facilities and infrastructure in place. Whether we are talking about a flourishing business district or a well-known mall, location can be a fundamental component to success.

Moreover, an existing business has at its disposal all of the necessary things for its full operation, such as equipment, furniture, and components that are necessary to provide its products and services. Additionally, the majority of existing businesses already have some kind of online presence, either with a website or pages on social media platforms.


– Suppliers and staff training


Trained employees and salespersons are some of the most important factors for the success of a business. They are the public representatives of your company on a daily basis. People and other businesses which are already familiar with the market and your business can also be of significant help, saving you both time and money.

Usually, trained employees are already well acquainted with the processes and systems that will help your business run smoothly. The shorter the amount of time that you need to spent in training your employees and salespeople, the more time you can invest in improving other areas of your business.

Existing suppliers will know the products that your business needs and will be in a position to cover its needs without interruption.


– Saved time


Setting up a new business requires time: from renovation and picking out equipment to acquiring operating licenses and creating a website or e-shop. All of this time has a high price. So, if an appropriate existing business can be found on the market, you can save time and energy in a way that it is vitally important.


Technical knowledge and experience


There are businesses where the technical knowledge and experience gained from years of operation as well as lessons learned from mistakes made are of inestimable value for the business world. Just imagine needing to spend 5 to 10 years in order to obtain the corresponding experience while this could be obtained all at once by purchasing an existing business.


Saved resources


The creation of a new business requires capital investment to cover operating expenses such as materials, equipment, and that is without even mentioning advertising and the employees’ wages that will need to be paid. A new business will also not have a solid customer base. You will have to spend time and capital promoting your business in order to convince customers to buy the products or services they need from you rather than from a competitor.

In conclusion, purchasing an existing business saves time and resources and drastically increases the chances of your business being viable in the long term.


If you want to learn more about buying an existing business, you can read the other articles that we have ready for you here, while, for buying and selling businesses, you can visit our website Business Interval where you can find your next big commercial venture.




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