Services to investors

Why buy a company rather than start your own?

In life, everyone wants to succeed. There are different methods of success; you can venture into the stock market, real estate or even digital services. Whatever the type of service, one thing they all have in common is that they are all forms of business. This means that to become financially dynamic, you need to own a business. Now you're wondering how to set up your own business? It's simple, and there are two ways. You can either start from scratch as a startup, or invest in the purchase of an existing business. Which is the right choice to make? Is it starting from scratch or buying? Starting from scratch can be a good option if you have a limited budget. But the process involved can be quite daunting. You could be working overtime, not seeing the development, as construction can take years of hard work.

Therefore, if you want to have a business without having to go through all the difficult development processes, buying a business is the right option for you. Some of the reasons / advantages of buying a business rather than investing are discussed in a list as follows.

1

Financing is easy to secure

The main problem in starting a business is finance. To start a business, you need a reasonable amount of money, which most people can't afford. To get this money, you either have to look for investors, or opt for a loan. Either way, most people will only invest or lend money to companies they trust. Most investors or lenders would rather lend money to buy an established company than support a start-up.

2

Quick income

What's the essence of starting a business? To make money, of course! Whether you call it impact on the world or not, you'll always make money with any business. With a start-up, you might start with losses for a while; but by buying an existing business, you start making money the day you buy. An existing business is already known and already has a range of customers; when you buy the business, you've also bought the customers and your budget.

3

Well-established customer network

The big problem with starting a business from scratch is having to build up a customer following. This takes a lot of time, energy and hard work because customers can, in many cases, doom your business idea. But with a business already built, the stress has already been reduced. You certainly have to keep working for more customers, but that's easy enough because you already have a network.

4

Focus on business growth

Don't be surprised by this part. No doubt, the hard work imposed on a start-up is everything to its growth, but on the other hand, the growth involved here is starting the business and it can be long and exhausting. However, when you buy a company, you're free to focus on the parts of the business that need the most attention and contribute to the growth of the business as a whole.

5

Low risk

This is the most important benefit of buying a business. Investing your funds to start a new business is a risk. The business can succeed or fail. It all depends on the idea, the dedication and the methods applied.

Buying a business, on the other hand, is not risk-free, but it is low-risk. When you buy a company that already has an excellent customer network, maintaining its buoyancy is the only job left. That's a lot less work than buying a start-up.

References

  • Pourquoi racheter une entreprise plutôt que de créer son propre business? Success Marketing. Récupéré ICI
  • Medal. A (2017, Peut 5). Les avantages d'acheter une entreprise par rapport à démarrer votre propre entreprise. Entrepreneur. Récupéré ICI
  • Sébastien C (2019, Août 15). 5 raisons de reprendre une entreprise déjà établie plutôt que d’en créer une nouvelle ! LinkedIn. Récupéré ICI
  • Bigot, R (2010, Juil 9). 10 bonnes raisons de créer son entreprise. Monster Son Business. Récupéré ICI

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