If you want to be a business owner, you have two basic options: Start your own company or buy one that already exists. What should you do?
Advantages of buying an existing business
The major advance of buying a company is that everything is already in place. You have a business, employees, materials, machines, contractors, and everything else. You can see the financial records, so you know if it works or not — or, at least, you can see what works and what does not.
Plus, you get a customer base. They’ve already heard of you. They already know where to find you. Your company may already have reviews and a reputation. With a start-up, you have nothing and half of the battle is getting people to find you.
Advantages of starting your own business
The start-up costs may be lower. You still have costs, of course, but someone who is selling an existing business is also trying to make a profit. This is prohibitive for a lot of people. If you start the company yourself, you can start small and build it up over time.
You also get to craft the company to be exactly what you want it to be. You don’t have any existing structure. You get to be creative. If you have a vision, you are the only person who is influencing it. Your business will truly feel like it is your own.
No matter which way you decide to go, it’s critical that you know about every step in the process. Starting a business from scratch and buying an existing business can both have unique legal challenges. An experienced legal team can advise you and set you up for success.