Want to Be a Business Owner? Learn the Advantages of Building a Startup vs. Purchasing an Existing Business

If you’re thinking about breaking away from life as an employee and starting your own business, you are likely looking at building a new business from scratch. While that is a great option in many cases, it is also smart to consider buying an established business and building it up from there. Learning about the advantages of each option will help give you the best chance of success.

Advantages of Starting from Scratch

Starting a business from scratch can be very exciting, and in many cases can lead to great financial success that will last a lifetime. There are certain benefits that you can only get by putting in all the work yourself. Some of these advantages are:

  • Experience – There is simply no replacement for going through the experience of building a business from scratch. You’ll learn a lot and it will help give you a great foundation that will help you for years to come.
  • Control – You will have complete control over how your business is run from day one. For many business owners, this makes it possible to avoid conflicts that may result when making changes to a business that you purchase.
  • Location – If you require a physical building, you will be able to choose the exact location rather than just acquiring a spot that the previous owner had chosen.
  • Initial Investment – For many types of businesses, the initial investment won’t be as high as it would be for trying to purchase an existing business.

Advantages of Buying an Existing Business

Purchasing an already established business can be a great opportunity as well. If you can find a business that is for sale that is something you would be interested in owning, it can make it far easier in many ways. The following are some key advantages of purchasing an existing business rather than starting your own and building it from the ground up:

  • Proof of Concept – If you are buying an existing business, you will have the existing profit and loss numbers to look at. This can confirm that the business can be successful, which is one of the biggest risks of starting a new business.
  • Employees – When purchasing an established business, you will ‘inherit’ all the existing employees. Finding and training qualified individuals is one of the biggest challenges of starting a business, so purchasing an existing business already takes care of this step.
  • Business Relationships – An existing business will already have a list of suppliers, vendors, and customers built up. These can be extremely valuable in growing the business moving forward.
  • Hit the Ground Running – Perhaps the biggest benefit will be that there is no need to ‘build up’ the business like there is for something brand new. You can hit the ground running and start making money from the very first day.

Need Help? We’re here for You

Whether you decide to start from scratch or purchase an existing business, you will need an attorney to help ensure everything is handled properly. Please don’t hesitate to contact APH Law PLLC to get answers to your questions, and schedule a consultation to discuss your future business.

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Written by APH Law PLLC

APH Law PLLC

When we founded APH Law PLLC in 2010, we did so out of a desire to connect business owners with more and better opportunities. No matter what industry you’re operating in, creating a strong foundation, preparing for the future, and protecting against challenges are key to long-term success. It is this kind of support that we take tremendous pride in helping businesses.