HIGH REWARDS FOR LOW RISK
Why buy a business? Purchasing an existing business lets you take control of your own destiny with low risk and high rewards.
Statistics show that owning your own business is the fastest way to financial independence, along with the lifestyle and freedom that come with successful business ownership.
If you buy an existing business, there is a greater than 95 per cent chance that the business will still be in business after five years (provided, of course, that you buy it right). On the other hand, only 35 per cent of those who start a business from scratch succeed.
The ability to substantially enhance the value of a business then sell it tax-free is a great addition to the regular income and dividends that ownership of a small business can provide.
ADVANTAGES OF BUYING AN EXISTING BUSINESS
A PROVEN BUSINESS MODEL
Among other attributes, an existing business will typically have systems and processes, supplier relationships, and key personnel in place. Previous owners can inform buyers of past trials & errors as well as best practices in running the business, saving a new owner time and money.
ESTABLISHED CUSTOMER BASE & REPUTATION
When purchasing an existing business, you will gain insights on existing customer relationships (including details on any current contracts) and the value that these relationships bring to the business.
IMMEDIATE CASH FLOW FROM ONGOING BUSINESS
Purchasing an active business will typically result in an immediate return on investment as the business continues to generate cash flows.