More Information About Starting Your Small Business
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Buying a Business |
Many find the idea of running a
small business appealing, but lose their motivation after dealing
with business plans, investors, and legal issues associated with
new start-ups. For those disheartened by such risky undertakings,
buying an existing business is often a simpler and safer alternative.
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Advantages |
The main reason to buy an existing
business is the drastic reduction in start-up costs of time, money,
and energy. In addition, cash flow may start immediately thanks to
existing inventory and receivables. Other benefits include pre-existing
customer goodwill and easier financing opportunities, if the business
has a positive track record. |
Disadvantages |
The biggest block to buying a small
business outright is the initial purchasing cost. Because the business
concept, customer base, brands, and other fundamental work has already
been done, the financial costs of acquiring an existing business
is usually greater then starting one from nothing. Other possible
disadvantages include hidden problems associated with the business
and receivables that are valued at the time of purchase, but later
turn out to be non-collectable. Good research is the key to avoiding
these problems.
Review this valuable course: Entrepreneurship: Starting & Managing Your Own Business
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