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Buying vs Starting an Existing Business!

Discussion in 'Useful Resources and Inspirations' started by Nunzio Presta, Jan 22, 2016.

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  1. Nunzio Presta

    Nunzio Presta Business Owner Entrepreneur

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    Buying an existing business can be more sexy and exciting than starting your own, ask Howard Schultz about Starbucks ;)
     
    setupdisc and T J Tutor like this.

  2. Vinaya.Ghimire

    Vinaya.Ghimire Entrepreneur

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    If you have a great idea but limited funds, you should always begin your own business. However, if you don't have fresh idea but have good money, investing in existing business is better.
     
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  3. ReadmeByAmy

    ReadmeByAmy Entrepreneur

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    Before I was excited from the start when I had my own business. But maybe because I was still single and young at that time and had no experience it turns out not good that is why I decided to stop its operation. That is why now if me and my husband plans will push through we would like to venture to an existing business already that had a name and had followers already. Some kind of a franchising business if our savings is already okay for our desired business.
     
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  4. Nunzio Presta

    Nunzio Presta Business Owner Entrepreneur

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    That's a good way to look at it.
     
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  5. Nunzio Presta

    Nunzio Presta Business Owner Entrepreneur

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    Very true. Well, you can definitely leverage the BizON marketplace in order to search and find the business or franchise of your dreams. Click here to learn more!
     
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  6. ReadmeByAmy

    ReadmeByAmy Entrepreneur

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    Thank you so much for sharing this information! :)
     
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  7. ProxyRadar

    ProxyRadar Entrepreneur

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    Buying an existing is more risking and less predictably in my opinion
     
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  8. Nunzio Presta

    Nunzio Presta Business Owner Entrepreneur

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    Would love to get some reasoning behind this thought. Looking forward to chatting about this.

    NP
     
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  9. bria1

    bria1 Entrepreneur

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    Okay never thought of that. I guess you mean like a franchise. I have a friend who was willing to invest in a tax service. It was a franchise and he became skeptical because it seemed like it was not a very lucrative brand.
     
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  10. T J Tutor

    T J Tutor Entrepreneur

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    Good point and not discussed often enough in this community. Buying an existing business that one can upgrade and redesign is a great path for an entrepreneur. In fact, for many, it is the only way.
     
    Last edited: Feb 8, 2016
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  11. setupdisc

    setupdisc Moderator Entrepreneur

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    If you have the capital and the connections, it can be better to buy pre-made and build your dream than to have to start from the ground-up. There's a lot of work that's already gone into making that business and making things easier for you, so if you have the funds liquid and people that you can coordinate with as Mr. Schultz did, then you can do well with it.

    If you're starting out, you might not have those resources immediately at your disposal and have to develop another strategy to do it. If you need the experience, or want the experience just as much as you need it...then buying a business might keep you from getting the hands-on time that you need in those areas. If you need to start small or teach yourself the ropes, then building your own business and starting small may be the best way. Even Mr. Schultz had to regroup, get involved with the business to learn about it, and then acquisition it after starting a rival to it. He developed a plan of action and then went forth to buy out his competition and turn the results into his dream.

    It really depends on what type of business it is you're trying to do this with and your experience level to know whether it would be a wise or unwise decision in the end.

    If you're already seasoned or know what you want and need to maximize your time and investment, then buying a business makes more sense, because you'll be able to take control and turn it into what you need it to be even faster.

    Whichever you decide upon, extensive research should always be done to know whether you are buying an opportunity or a lemon. The history and reputation of what you buy that is pre-existing can either be a race car or the Titanic right after the iceberg. If it's a physical brick-and-mortar location, knowing the status of the equipment, the building, the location, and even the neighborhood, accessibility, and spending demographics of the city are important in making that final decision.

    Staying positive, it is true that it is always possible to turn anything around and make it a success. Even if you made the mistake of purchasing a lemon, you can still do a lot to turn it into a lucrative orchard. A lot of folks are always looking for that lottery ticket purchase or the free lunch, but all things considered, it's always going to require work and effort on your part in some form.

    The sunny side to life as an entrepreneur or business owner is that work is never really work when it's your passion. It's just things you have to do that take time and patience at that point. Good things come to those who work for it! :)

    If you can share the passion with someone else that also loves to do what you do and is interested in buying a business with you, that can be another great start and compelling plus to buying a pre-made business, especially if one or both of you already have the experience with starting your own in the past to be ready for any challenges to it.
     
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  12. CM_2016

    CM_2016 Entrepreneur

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    If you're buying a business that is not doing great though, is it really worth the time and monetary investment in trying to turn it around? There is a local restaurant that went under due to financial problems that was started up again in another location, and then was bought by another businessman. He rebranded it, but it was only slight as I believe he didn't want to alienate the clientele. However, it seems it still bears the same poor reputation that the old owner had made it into since the new one did not rebrand enough.

    Is it really worth the time and money to try and build it back up?
     
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  13. Nunzio Presta

    Nunzio Presta Business Owner Entrepreneur

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    No. Due diligence is key and during this process you want to find a business or franchise that is thriving. You're not here to be any sort of survivor. Your here to exploit on an opportunity that suits your lifestyle and makes you money. Finding a business or franchise in a good location, with recurring sales and strong financials is key! Hope this helps.
     
  14. olgab

    olgab Entrepreneur

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    This is probably make sense for me also. I think if you have a fresh idea you can try to start from the ground, you can get a learning that may be important to grow your business in future.
     
    Nunzio Presta likes this.
  15. Nunzio Presta

    Nunzio Presta Business Owner Entrepreneur

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    It's always a good idea to do a gut check! The BizON marketplace has other established, profitable and turnkey businesses in the accounting sector. If he is still looking...
     

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