Business For Sale & Franchise Search Engine  
   
My Account
Search Businesses For Sale
Location:

Category:

to refine your search results use advanced search  
Franchise Opportunities

Sell Your Business, Starting at $20.99 per month
Small Business Resources > Why Buy an Existing Business?

Why Buy an Existing Business?

With so many options available to you, the question will become which vein of the business - ownership arena should you pursue? Between franchises, existing businesses, start-ups, home- based businesses and MLMs, it does become a bit overwhelming. When reviewing all of the possibilities you have to decide what will work best for you; however, your chances of success are clearly best when you buy an existing business or franchise resale for many reasons. With any new business you have two challenges: developing the product or service and then seeing what, if anything, people are willing to pay you for it.

Regardless of a company's past performance, an existing business or franchise will, at the very least, have a history from which you will be able to make certain decisions. Even if the company was not profitable in the past, your strengths may lend themselves perfectly to turning it into a viable venture. Furthermore, you have the ability to verify what the company did in the past that resulted in the current status of the operation.

Ease of Investigation In order to buy the right business or franchise, you will be required to do a thorough investigation of its past activities, its operations, its current status, the competition, the industry and its future potential. You will accumulate this information and then you will have to determine how it measures up with you at the helm. Clearly, this information gathering will be substantially more accurate and easier to obtain when dealing with an existing business or franchise, as you will have the resources available from which to get the details.

Infrastructure You will have the benefit of purchasing a company that has an infrastructure, including customers, suppliers, employees, equipment and systems. This will allow you to focus on building the business as opposed to a start-up or new franchise where everything begins at ground zero.

Purchase Price Differences Buying an existing business or franchise does not mean that it will cost you more. In fact, many times it's less expensive than building a new franchised location or launching a start-up. Even in those cases where it may require a premium, at least you know what you are getting if you investigate it properly. With a new franchise, a good Master Franchiser will do demographic studies on population, drive-by traffic, potential customer base and a whole series of studies that will indicate that "theoretically" the business should do well. However, the only thing they cannot guarantee either by law or in reality is whether or not you will be successful. Also, new locations can take a year or more to build. You can avoid all of this when buying a resale.

Flexibility in Negotiating You will have far more flexibility when negotiating the purchase of an existing business or franchise versus any other options available; it's not even close! Everything from the purchase price to financing is open to negotiation. Doesn't it make more sense to put yourself into an environment where you have the greatest number of options available?

About the Author
Richard Parker is the author of How To Buy A Good Business At A Great Price ©, the most widely used reference resource and strategy guide for buying a business. This comprehensive simple to follow guide contains 420 pages of expert tips, proven strategies and winning negotiating techniques. Mr. Parker has purchased ten small businesses in the past 14 years. As President and founder of Diomo Corporation - The Business Buyer Resource Center, his materials have helped thousands of prospective small business buyers realize their dream of business ownership (click here to read some of their stories). His programs are sold in over 50 countries. Available in hard copy or via immediate electronic download. To order a copy click here. Review the complete course outline.











Related Resources
Buying a Business
10 Reasons to Buy a Franchise
12 Laws of the Business Buying and Selling Jungle - PART I
12 Laws of the Business Buying and Selling Jungle - PART II
Advantages & Disadvantages of Owning a Franchise
Advantages and Disadvantages of a Start-Up Business
An Overview of Today's Business Opportunity Market
Auto Franchises
Become a Franchise Consultant
Business Brokers
Business Brokers – How They Can Help You
Business Buying Tips
Business Lawyer
Businesses for Sale by Owner
Businesses under $10,000
Buy A Business Using This One Simple Skill
Buy A Business With No Money Down?
Buying a Business - How to Buy a Business
Buying a Business Steps
Buying a Business: Using An Outside Inventory Company
Buying A Franchise
Buying a Restaurant - What You Need To Know
Buying the Right Business
Coffee Franchises
Dispelling the Common Myths about SBA Financing
Do Home Based Businesses & Franchises Really Work?
Do What You Love or Love What You Do
Do You Need Bricks and Mortar Anymore?
Financing The Deal
Finding A Business To Buy Tips
Food Franchises
Forget The Asking Price of A Business For Sale
Franchise Alliance
Franchise Information
Franchise Lawyers
Franchise Reviews
Franchises - What To Consider
Free Small Business Magazines
Getting Into Business: Don't Start It! Buy It!!
House Cleaning Franchises
How Do I Obtain Capital To Invest In My Business Start Up
How Much Does a Franchise Cost
How To Buy A Business - Part 1
How To Buy A Business - Part 2
How To Buy A Business At A Great Price CD
How To Buy A Good Business At A Great Price
How to Make More of Your Franchise
How To Value A Business
Hurricanes Affect the Value of Florida Businesses
Little-Known Business-Funding Option Awaits Your Discovery
Low Cost Business Ideas
Negotiating The Price of a Business for Sale
Questions to Ask a Franchisor When Buying a Franchise
Reasons to Use a Franchise Consultant
Restaurant Start-Up Guide - Start Your Own Restaurant
Selling Your Technology Company - Why Earn Outs Make Sense Today
Small Business Loans for Small Business Owners
Starting a Small Business in Less than 24 Hours
Ten Common Mistakes Made by Franchise Buyers
The Advantages of Buying An Existing Business
The Advantages of Unsecured Business Loans when Buying a Business
The Complete Guide to Buying a Business
The Differences Between a Franchise & Business Opportunity
Things To Consider Before Buying A Business: Be Careful
Three Signs Of A Franchise Winner
To Franchise or not to Franchise
What is a Letter of Intent?
What is an E-2 Visa?
What is Cash Flow?
What is Due Diligence?
What is EBITDA?
What is FF&E? - Furniture Fixtures and Equipment
What Is My Business Worth? Learn How Small Businesses Are Priced
What is Seller's Discretionary Cash Flow?
What to Avoid When Starting a Vending Business
What to Investigate Before You Buy a Business
What to Look for When Buying a Business
What to Look for When Buying an Online Business
What to Think About Before Buying a Franchise
When To Start The Due Diligence Process?
Wholesale Distribution Start-Up Guide - Start your own Wholesale Distribution Business
Why Buy an Existing Business?
Why Buy an Existing Business?
Work From Home Scams
©2017 BusinessMart.com.
Broker Membership | Terms Of Use | Financial Disclaimer | Privacy Policy | Cookie Policy | Resources | Franchise Opportunities | Website Traffic Ranking | Sitemap | Careers | Contact Us