Advantages to Buying a Business vs. Starting a New One

Is it better to buy an existing business or start a new one from scratch? This is a question entrepreneurs ask all time. In this video, Vested Business Brokers owner and CEO, Nathan Goldsteiin offers his opinion…

Buying a Business Vs. Starting a New One

The truth is that most businesses fail due to the following reasons:

  1. They’re under-capitalized
  2. They’re over-utilized
  3. The owners/managers don’t have the requisite knowledge base
  4. The wrong location is chosen

When you start a new business you have no idea if it will be a success or a failure. There are just too many unknown variables in play to know for sure if your new venture will be a success.

In contrast, when you buy an existing business, you have the opportunity to “take a look under the hood” BEFORE buying. You can see whether or not the business you’re considering is a profitable one

When you start a new business you can’t do that – you just don’t have that luxury.

For this reason alone we at Vested Business Brokers strongly suggest that the smartest move is to buy an existing, profitable business.

Take Your Time When Buying a Business…

We encourage our buyer clients to take their time and do their due diligence before buying. Have your attorney and accountant analyze what you’re thinking of buying.

Letter of Intent…

Once you have done your due diligence and the business you’re looking at passes muster you need to move quickly. Lock up the business by doing a Letter of Intent (LOI). A Letter of Intent is a non binding document that will lock in the price and the terms of sale for your purchase of the business.

We want you to know that you don’t have to go through the business buying process on your own. We are experts in buying and selling businesses. It’s what we do…and have done more than 1000 times since 2001.

We wish you all the best and if you need help give us a call at (877) 735-5224.

Leave a Reply

Your email address will not be published.