Starting a business and most people assume that if you want to run a business, you have to start it from scratch. It isn’t strictly true as you can also buy an existing business if you wanted. This throws up a big debate over which option is better for you? Well, the only way to settle this is to look at arguments from both sides.
BUYING A BUSINESS
Hardly anyone thinks about buying a business, but it could be an excellent idea for you. One of the big points in the ‘pros’ column is that you bypass all the nitty-gritty processes that come with starting a company from scratch. Let’s say you wanted to start a childcare business for a second here. As you can see on the Benchmark Childcare Sales website, you could buy a business that comes with premises, a good location. This stops the need to go out and find all these things individually. The same applies to a retail business, they’re often for sale, and you get to buy the premises and location, as well as taking on the brand too.
That leads to another good point; you don’t have to spend too much time or money in establishing your brand. If you buy an existing business, then the brand is already there in place. Likewise, you may already have a small customer base to feed on, which means you can start earning money right away.
Some people sell businesses purely because they’ve fallen out of love with it, or they can’t handle the strain of running one. So, it doesn’t necessarily mean you’re buying a failing business. You could end up with one that’s doing well and already established in its market. Furthermore, you could already have skilled employees in place, meaning you haven’t got to go out and hire them all.
STARTING FROM SCRATCH
A lot of the good things about starting from scratch play on the negative points of buying a business. For one, some companies don’t cost a lot to start up. If you start a small service-based business that draws on your talents, you can run it from home with almost zero overheads. In comparison, buying a company is relatively costly - mainly if you want a successful one.
Secondly, starting a business means you have complete control over everything from the word go. When you buy one, there may already be things in place - such as a marketing strategy - that you might have to alter. When you start from scratch, you are in full control of everything.
Finally, when buying a business, you inherit all the overhead costs that come with it. This can take time for you to adjust, meaning you spend a lot of money. But, when you start your own company, you decide what overhead costs are worth some investment. In short, the costs of starting a company can be far less than buying one.
In the end, it comes down to a straightforward question; do you have an original business idea that you want to run with? If you do, then it makes sense to start from scratch and build from there. But, if you’re just interested in owning a business, then it might be beneficial to buy instead. Contributed Content.