Should I start from scratch or buy an existing business?

[King bell]

The decision to start a business can be one of the most difficult decisions you'll ever make. On one hand, it's exciting to think about what your company will do tomorrow, but on the other hand, you might feel overwhelmed as tens of thousands of dollars race through your mind. If this is the case, then ask yourself these important questions: Are there already other people doing what I'm interested in? What are their plans for the future? Will they go away soon?

Buying a business is also called "buying a franchise" when the owner has started the business, been in it for 10 years, or more. It's also called "buying an existing business" when you want to start doing something similar yourself, but with slightly different plans. The process is the same though.

Starting your own company from scratch then you'll likely have more opportunities than if you're buying one. Therefore, you'll have a bigger chance of being successful. The reason behind this is that there are more startup businesses every year than there are existing businesses. On the other hand, if you buy an existing business then it's likely that you'll have only one option to choose from. This means if you don't like it, then your only option will be to create your own business from scratch; which is often more work and time consuming. Another thing to consider is buying an existing business has greater risks than starting one because another company is already doing it successfully. So much of what you want to do might be almost exactly the same as what the company does already or something very similar.

 

[Augusta]

Different strokes for different folks these will boil down to what an individual wants to achieve the objectives, aims and goals. for me if I have my plans for my kind of business set out I will prefer to go for a new business, so that I start building the business with my goals in mind. Maybe it will help me build my kind of business faster than buying an existing business


One thing with buying an already business is that you don't know what is wrong with the business that the person wants to sell it. Nobody would want to just up and get sell a viable business. They must have been something wrong with the business

So I might not want to risk my money with an existing business unless the business is relocating but without such reason I wouldn't buy I will keep my money and start a new business

 

[Jasz]

The answer depends on your personal situation, the industry you're in and the amount of money that you can afford to invest.

If you have good ideas for products and services, but don't know how to build them into a business, then buying a business could be an option. Buying a business means that you have someone else who knows how to run it and that you don't need to spend time learning about all of the ins and outs of running a business.

Buying a business also allows you to take advantage of economies of scale. For example, if your new business requires three employees, but only one is needed now, buying the company will allow you to hire more people when needed later on. However, if I have what it takes, I will like to start my own business, my business is like me, I need to be part of it from the early stage to maturity stage, no the less, I could still buy a business I love the initiative but only if I have an existing one already.

 

[Kingsley]

Buying a successful business may really sound like a very good idea because it will save one a lot of stress and cost aswel. There are enormous benefits that comes with buying an exiting business mostly when the business had been successfully. The business must have already gathered it target customers and there won't be challenges as to how to create awareness of the product or services. But the challenge will now set in if the person that is acquiring the business does not have the prerequisite of managing such a business. That will actually lead to the death of the business.


On that account it will be more advantageous for one to start off from the scratch as this will provide one the opportunity of learning the business and it will enable the person that is starting up the business to gather enough experience that will make the business to even perform far more better than a business that was acquired.

Experience has shown that people who buy off an existing business all because they think it is successful or it is cheap and almost falling apart, ends up selling the business as a result of the same problems that made the initial owners to sell off the business.

 

[Carpon]

There are advantages and disadvantages that are attached to both buying and creating a new business.

When you create your business newly, you have the opportunity to organise and lay the foundation on which it will be built upon. Starting a business from the scratch helps you to make good decisions about the business's continuity. A disadvantage is that you must be able to acquire much knowledge about your potential business and you may need a higher capital to begin compared to the amount you may use to buy an already existing business.

On the other hand, the advantage of buying a business is that if you are opportuned to be purchasing from a credibile person, you will meet with a good business foundation and you won't battle with that. A disadvantage is you may find out that your purchased business is not a very stable one and you will battle with keeping it on track.