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Buying an Existing Business
Another option to becoming a business owner is to buy an existing business. This option not only offers the opportunity to buy into a reputable already recognized business, but it also simplifies planning which saves time.
Buying an existing business also allows you to hit the ground running with an established customer base and relationship with vendors and suppliers, employees, and in most cases inventory.
However, buying an existing business does not come without risk. Here is a comprehensive list of the advantages and disadvantages of buying an existing business:
Current owner’s advice and insights
Poor business location
Established customer base
Better financing options
Poor employee performance
Already established brand
Potential unfavorable business reputation
Higher initial investment
While buying an existing, well-established business allows you to dedicate more time to learn the business and develop strategies to increase revenue, capital is still needed when purchasing an existing business; at least 15-20% of the purchase price is recommended.
If you are unable to secure traditional small business or personal loans, you might want to consider a loan sponsored by the Small Business Administration.
Click here for more information on SBA 7(a) Loans.
Resources for buying an existing business
UMass Amherst MA Small Business Development Center - Statewide Training & Event Calendar
Center for Women & Enterprise - Courses
SCORE - Take a Workshop
HarborOne Bank Voyage Tools for Business - Tools and Templates