Indian manufacturing activity shrinksThere are many reason for buying and existing business below is the 7 top reasons to buy.

Reason One: Cash is King. 95% of business fail due to lack of cash flow.  If you buy a business, you will have immediate cash flow, as per the trading history. If you start a business of your own, it’s anyone’s guess when the money will start coming in.

Reason Two: If you buy a business, you will have historical financial data you need to evaluate the business you are considering. If you start a business of your own, there is absolutely no history available to evaluate the business.

Reason Three: If you buy a business, you will have trained employees already in place. If you start a business of your own, you’ll be doing all the work initially – and then you’ll be faced with trying to recruit competent people.

Reason Four: If you buy a business, you will have existing customers who are familiar with the company. If you start a business of your own, you are starting from zero with your selling and marketing.

Reason Five: If you buy a business, you will have proven policies, procedures established to operate the company the day you take over. If you start a business of your own, everything is new! You can only implement company policies as a reaction to problems you encounter.

Reason Six: If you buy a business, the company’s past gives you a good picture and a high level of comfort about the future. If you start a business of your own, who knows? No matter how detailed or fancy your business plan may be, there’s no guarantees.

Reason Seven: If you buy a business, you know from the beginning what your monthly expenses will be and what the revenues should look like, based on prior history. If you start a business of your own, revenues generally come in half as fast as you expect – and expenses are usually much higher than anticipated.

7 Reasons to buy an Existing Business

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