5 Reasons Why Buying a Business is Better Than Starting Your Own


5 Reasons Why Buying a Business is Better Than Starting Your Own

October 10, 2017 | 0 Comments

Starting your own business from scratch often results in failure. Forbes states that 90% of new businesses fail within the first 5 years!

If you are new to entrepreneurship, why start your own business when the statistics are clearly not on your side? Why not buy an existing business and mitigate your risks?

Here are the top 5 reasons why to buy an existing business instead of starting your own.

1) Existing Customer Base

Buying a business comes with loyal customers and it’s more than likely that those customers have referred other customers. When starting a business acquiring customers can be difficult and turning new customers into repeat, loyal customers is even more challenging. When buying a business you don’t have to break the bank as much on marketing dollars as you would when starting a business.

buying a business is better than starting your own

2) Established Financial Strategy

When starting your own business you have to develop a financial strategy which is a daunting task. When buying a business, the financial strategy is already mapped out. This makes it easier to gauge future earnings and develops an accurate financial picture.

Buying a business is better than starting your own

3) Immediate and Predictable Cash Flow

An existing business already has projected revenues, payroll costs and debt servicing laid out for the new owner. This process could take months or even years for a start-up business owner. It’s more than likely that an acquired business also has a growth strategy. This will allow the new owner to understand how to take the business to the next level.

Buying a business is better than starting your own

4) Trained and Skilled Workers

Developing, hiring and training workers for your start-up is both costly and time consuming. Also, finding good and loyal employees who work hard and won’t leave after a month is tough too. Buying an existing business eliminates this problem and bypasses this pain-staking process.

Buying a business is better than starting your own

5) Established Suppliers, Licenses and Permits

Developing a good business relationship with suppliers takes time and effort, something that you can avoid when buying an existing business. Also, the licenses and permits required to operate have already been established as well which also takes a lot of time and effort.


These 5 factors can be detrimental to start-up business owners and are the main reasons as to why 90% of new businesses fail. Not to mention, free-time is out of the question for new business owners if they stand a chance of making it past the first 5 years.

Here at The Business Exchange, we offer thousands of businesses for sale and franchises for sale that are reputable and profitable. It is worth your time and money to look into purchasing an existing business before you take the risk of starting your own.

Categories: Business for Sale, Buy a Business, Entrepreneurship, Start a Business,

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