Should you buy an existing business or start one from scratch? Compare customers, revenue, employees, systems, financing and risk.
Starting from zero is romantic.
It is also hard.
1. Existing Revenue
You aren’t waiting for the first customer.
2. Existing Customers
The customer base already exists.
3. Existing Employees
You inherit an operating team.
4. Existing Location
You may not have to build out a facility.
5. Existing Reputation
Brand equity can be valuable.
6. Existing Suppliers
Relationships are already established.
7. Existing Systems
You have something to improve rather than build.
8. Financing Potential
An established cash-flowing business can provide a basis for financing.
9. Historical Data
You can analyze what actually happened.
10. Immediate Ownership
You start operating rather than waiting years to build a customer base.