When you don’t eat breakfast, you start your day running on fumes and by lunch time you are famished! But when you eat breakfast, even just a simple piece of fruit, you provide your body with the energy to make it through the day well energized. Buying an established business is like choosing to eat breakfast! You are able to give yourself a successful leg up whereas starting a business from scratch (i.e. foregoing the Wheaties) has a high failure rate. In Colorado, 52% of small businesses fail within the first four years of their start (as of 2016). But this percentage dramatically decreases with the purchase of an established business.
Proven Business Concept. Buying an established business is simply less risky than starting a business of your own. The concept has been proven to work and has a track record of success. This also comes in handy when financing the business purchase, as banks are much more willing to lend to a buyer with a proven concept than fund a startup business.
Established & Recognized Brand. When purchasing an established business, there will already be a well-developed brand, that is recognizable to the community. It is much easier to find success marketing an established business than marketing a new business - not to mention, there will already be a previously established customer base.
Staff In Place. Hiring employees is a costly and time consuming endeavor and every penny counts within a startup business. An established business comes with an established staff that are trained to operate the business already. So there is no time or money wasted getting operations started because the staff will continue to work through the transition from one owner to the next.
Customer Base. An established business has had the time to develop customer relationships and a loyal following. And customers mean revenue from the time of purchase on! In a startup business, the owner will have to first gain traction in the community to develop a revenue stream.
Growth & Planning. Buying an established business means that instead of focusing on building a viable startup business, the owner can focus on strategic planning initiatives. This factor alone can alleviate a large piece of the risk and stress of building a startup business.
For more information on our business purchase process or to meet with a knowledgeable broker, please visit our website or schedule a free consultation today!
Rachael Holstein joined the Transworld Team in 2016 as Marketing Coordinator. Her working experience has been largely focused on Business Development and Marketing in the finance, architecture, property management, and information technology industries. A long time resident of Cleveland, Ohio, she attained her Undergrad from John Carroll University and a Master’s Degree in Global Interactions from Cleveland State University. She relocated to Denver in 2013 for a change of scenery and a bit of adventure.
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