Buying vs. Starting a Business

When is it better to start a business, and when is it better to buy a business? Most people believe that buying a business is expensive, which is why they choose to start a business instead. This belief, however, is erroneous. Research shows that buying a business is actually cheaper than starting a business, because there are lots of unexpected costs involved with starting a business from the ground up.

What are the advantages of buying a business? Here are a few of them:

• It costs less than starting a business
• You already have a steady stream of customers
• If you buy a profitable business, you get income right away
• You can focus on building the business to the next level
• Less uncertainty, which translates into reduced risks
• Banks will finance buying an existing business, but are unlikely to finance starting a new business