There are different routes into running a business. Starting up may sound hugely exciting, or it may sound terrifying - either way, it's well worth finding out about how it compares to buying to ensure you're choosing the best path. This guide looks at how buying a business compares to starting up in terms of:
When you buy a business, it's often easier to secure finance from banks or investors than if you were starting up, as buying is lower risk and an existing business already has an existing customer base and proven market. As the business should already be profitable, you get a salary from day one - unlike in a start-up, where you may wait years. An existing business also already has an established network of suppliers and employees and a reputation, saving you the hassle of building these up.
Buying a business is typically more expensive than starting up, and most of the overheads will be fairly inflexible. You may find it restrictive or frustrating playing out someone else's plans, and you may find existing staff and customers resent a new boss and any change you want to bring with you. Buying can be a very long process, with lots of legal and other professional fees involved, and once you're running the business you may discover lots of problems that threaten success.
If you're passionate about a particular product or type of business and you feel confident starting from scratch, starting up may be for you. If, on the other hand, you'd prefer to run a business which is already established without the drama of building up everything within it, buying may be for better. Of course, the choice also depends on whether you can afford to buy and on what kind of business you want to run - figure out how much money you've got and what business you want to run before making any big decisions.
To help you along, we've created Smarta Buisiness Builder, the one place where you can find all the tools you need to start developing your business.
To help you on your business journey, we've created Smarta Business Builder, the complete online tools package for growing your business. Website Builder, Business Plans, Accounting Software, Legal Documents and Email - all in one place - from just £20 per month with no contract! Try it out today.