How to Decide Between Buying a Business or Starting from Scratch
April 5, 2017 by Easy Buy Sell Business in Blog

How to Decide Between Buying a Business or Starting from Scratch

How to Decide Between Buying a Business or Starting from Scratch

Whether you’re a seasoned entrepreneur or business person, or looking to take your first plunge into the world of business, there is one question you need to ask yourself – do you take a leap of faith and start a business from scratch? Or do you minimise your overall risks and buy an existing business?

It can be a tricky choice to make. Both options have their own sets of pros and cons, and the smart thing to do would be to research both options before deciding which path is going to suit what you need the best.

Let’s look at what some of the pros and cons of both these options are going to be if you’re considering either one of these as your next venture:


The Pros and Cons of Starting a Business from Scratch


The Pros and Cons of Buying an Existing Business

The pros of taking over an existing operation is that it’s already generating a steady cash flow stream and profits. An existing business already has employees, an established customer base and a reputation. It also much easier to get financing for an existing business compared to a fresh one with no track record.

The cons of buying an existing business would be that your investment costs are going to be considerably more compared to if you were to start from scratch. You also run the risk of being saddled with an obsolete inventory or a business that isn’t making quite as much profit as it should. A lot of research will be needed on your part to ensure that you’re making the right choice before deciding on a sale.


Choosing the Right Option

Whether you decide to take over a business, or begin one from scratch, the business word is unlike any job you’re ever had. While it may be brimming with opportunity and possibilities, it also comes with its own challenged you need to be prepared for.

3E Accounting Pte Ltd, Singapore – Corporate Service Provider has the panel of experts you need to help you navigate all the important decisions you need to make when it comes to doing business. Contact our panel of experts today to find out more.