Entrepreneurship looks different for everyone. Some entrepreneurs prefer to start a business from the ground up, while others prefer to purchase an already existing business. We are going to talk through the benefits of purchasing an already established business instead of starting one from scratch. 

Established Brand 

At Transworld Cleveland West, we know that brand recognition and awareness both play a role in the level of success achieved by a business. Much like a puzzle, building a brand from scratch requires a great deal of trial and error which is a costly endeavor. Buying an existing business makes this piece easier because there is a company brand established and a customer base in place. With an existing business there is an on-line website history that in many businesses is crucial to driving organic customer traffic. With the brand in place the new business buyer can focus on growing the business and expanding the brand instead of building it.

At Transworld Business Advisors Cleveland West, we sell established businesses as well as Franchises. Check out our current listings.

Existing Income Stream

Another major benefit of buying an existing business is that they come with an existing revenue stream. This allows the buyer to begin to receive income from day one, while working to improve financial performance and maximize the value of the business. Some entrepreneurs are not willing or cannot afford to go through the start-up years until they make a profit. And who can blame them? Waiting up to three years for a paycheck can be a burden on any entrepreneur. Buying a business with an existing income stream lessen the financial strain on the buyer.

Trained Employees

When considering whether to buy a business or start something brand new, it is important to keep in mind that acquiring, and training employees is a monumental and necessary investment. The employees of a business are generally the most valuable asset in the business. When you buy an existing business, you will have a trained staff in place to manage and operate the business. Having experienced employees with inside knowledge of   of the business and its’ customers is priceless.

Operations, Systems, and Equipment

All businesses require systems and processes in place to operate efficiently and productively. When buying an existing business, the systems and processes have already been developed. Although no business is perfect, some entrepreneurs find that streamlining and redefining operations and systems, rather than building their own, fits their mission more soundly. Another huge financial investment in a business is the cost of Furniture, Fixtures & Equipment (FF&E). When buying an existing business, the equipment to operate the business is included, and the business location is already furnished and built out. Entrepreneurs starting from scratch may find themselves undercapitalized with all the start-up costs associated with building the FF& E from the ground up.

Marketing

Businesses who have achieved brand recognition have marketing systems in place. They have created advertising campaigns and have evaluated them in different media sources. They know what works and which technics provide the best return on their marketing dollars. Most existing businesses are sold with their intellectual property in place such as logos, trademarks, patents, marketing literature, and even television commercials.

Buying an Existing Business Increases Success

When an entrepreneur acquires an existing business, statistics show the chances of that business succeeding over 5 years increases to 90 – 95%. These businesses bring an established brand, existing marketing, employees, immediate cash flow, customer base, and operations that are already in place, it just makes sense to acquire a business that is already operating.

Check out our current businesses for sale.