Buy, Don’t Start a Business
Buy, don’t start a business.
Buy a business verses starting a brand new concept has many benefits. This route is usually faster, safer and more profitable than starting a new. The initial upfront costs may be greater. If you factor in the time and investment it takes to build a customer base, a brand and cultivate goodwill, an existing business is usually less costly. When purchasing an established business, you don’t add to the competition. Even more importantly, you receive an existing revenue stream from day one. When starting a business, the cash flow (if there is cash flow) is an unknown.
Another compelling reason to buy an existing business is the failure rate. Run a quick Google search and find failure rates as high as 80 to 90 percent. Although the exact percentage is impossible to determine, it’s safe to say “the odds are not in your favor”.
“About half of all new establishments survive five years or more and about one-third survive 10 years or more. As one would expect, the probability of survival increases with a firm’s age. Survival rates have changed little over time.”
– Source: U.S. Bureau of Labor Statistics, BED
The latest data from the Small Business Administration (SBA) states that nearly 66 percent of small businesses will survive their first two years. About one third of total businesses will fail in the first two crucial years. Who would want to go up against those odds?
Research tells us, the number one reason for business owners selling their business in today’s market is retirement. The number two reason for selling is burn out. Both of these motives bring great opportunity for entrepreneurs who want to own a business and control their destiny.
Due to the confidential nature of these transactions, potential business buyers never know these business are for sale. If you are in search for an existing business opportunity, I encourage you to contact a business broker and request to be contacted when a new business is listed.
Chris Kerth begins the sales process with a Free, No-Obligation Market Analysis.
We only get paid when the deal closes.
Let Chris Kerth and Murphy Business sell you’re Business.