Are you looking to turn a great idea into a multi-billion-pound company? Good, because this is the era of startups. Within a matter of minutes, you can have a logo, a website, and an influx of customers. It’s all about the new formations, so why even search elsewhere?
It is true that starting a company has never been easier than today. From eCommerce to cutting costs, there is a hack for everything. But, the best entrepreneurs understand that the first offer is never the one to accept. Always shop around before signing on the dotted line.
With that motto in mind, here are the benefits of buying a business.
Startups have plenty on their plate, but the biggest task is to set up the brand. Without a product or service that a customer can trust, there is no way to make money. Success rests and falls on the efficiency of the logo and the perception of the business in the public’s mind. Sure, developing it from scratch and building it from nothing is rewarding yet it’s also costly, both in terms of time and money. Buying a business means the brand comes with it too and you can piggyback off of its reputation.
Location, Location, Location
Okay, so you can create and run a viable business model from your bedroom these days. Aside from cutting costs, there aren’t too many pros. Yes, there are little things to keep in mind, but the big things are left out. Take the firm’s location as an example. No consumer wants to see a residential address on any correspondence. If they do, they’ll know the company is small. You can rent a P.O Box but this involves deception. A reputable organisation comes with office space that is in a prime location. And, if it doesn’t, then choose one that does. That way, you’ll be in the heart of the centre as well as the shopper’s minds.
Fewer Money Troubles
At a glance, you wouldn’t be the odd one out if you thought a startup was easier to finance. After all, buying an established brand is going to cost a hell of a lot more money because there are valuable assets to tie up. However, lenders, mainly the banks don’t see it this way. Instead, they view a startup with few assets and no reputation as a risky business venture. Lenders would rather give money for a purchase than development because it isn’t a gamble.
For those that assume the expenses will be higher, think again. The loan may be bigger, but established businesses make money from day one. They have the customer base as well as the products and services to turn over a lot of cash. As a result, you can start paying back the balance as soon as possible and avoid interest hikes. Startups are different as they don’t make money for a long while. In lots of cases, this leads to missed payments and mounting debt because of a lack of cash flow.
What would you rather do – start or buy a business?
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