{"id":560635,"date":"2013-04-26T10:37:09","date_gmt":"2013-04-26T14:37:09","guid":{"rendered":"https:\/\/vrbbd.wpengine.com\/vrbbgreenbay\/advantages-of-buying-an-existing-business-2\/"},"modified":"2022-01-31T12:43:57","modified_gmt":"2022-01-31T17:43:57","slug":"advantages-of-buying-an-existing-business-2","status":"publish","type":"post","link":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/advantages-of-buying-an-existing-business-2\/","title":{"rendered":"Advantages of Buying an Existing Business"},"content":{"rendered":"

1. Established.<\/strong><\/p>\n

An existing business is a known entity. It has an established and historical track record. It has a customer or client base, established vendors, and suppliers. It has a physical location and has furniture, fixtures, and equipment all in place.\u00a0 The term \u201cturnkey operation\u201d is overused, but an existing business is just that, plus everything else. New franchises may offer a so-called turnkey business, but it ends there. Start-ups are starting from scratch.<\/p>\n

2. Business Relationships.\u00a0<\/strong><\/p>\n

In addition to the existing relationships with customers or clients, vendors, and suppliers, most businesses also have experienced employees who are a valuable asset. Buyers may already have established relationships with banks, insurance companies, printers, advertisers, professional advisors, etc., but if not, the existing owner does have these relationships, and they can readily be transferred.<\/p>\n

3. Not \u201cA Pig in a Poke\u201d.\u00a0<\/strong><\/p>\n

Starting a new business is just that: \u201ca pig in a poke.\u201d No matter how much research, time, and money are invested, there is still a big risk in starting a business from scratch.\u00a0 The existing business has a financial track record and established policies and procedures. A prospective buyer can see the financial history of the business — when sales are the highest and lowest, what the real expenses of the business are, how much money an owner can make, etc. Also, in almost all cases, a seller is more than willing to stay to teach and work with the new owner — sometimes free of charge.<\/p>\n

4. Price and Terms. \u00a0<\/strong><\/p>\n

The seller has everything in place. The business is in operation and a price is established. Opening a new business from scratch can be the proverbial \u201cmoney pit.\u201d\u00a0 When purchasing an established business, the buyer knows exactly what he or she is getting for his money. In most cases, the seller is also willing to take a reasonable down payment and then finance the balance of the purchase price.<\/p>\n

5. The \u201cUnwritten\u201d Guarantee.<\/strong><\/p>\n

By financing the purchase price, the seller is saying that he or she is confident that the business will be able to pay its bills, support the new owner, plus make any required payments to the seller.<\/p>\n","protected":false},"excerpt":{"rendered":"

1. Established. An existing business is a known entity. It has an established and historical track record. It has a customer or client base, established vendors, and suppliers. It has a physical location and has furniture, fixtures, and equipment all in place.\u00a0 The term \u201cturnkey operation\u201d is overused, but an existing business is just that, […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[7],"tags":[],"class_list":["post-560635","post","type-post","status-publish","format-standard","hentry","category-buying-a-business"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/posts\/560635","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/comments?post=560635"}],"version-history":[{"count":0,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/posts\/560635\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/media?parent=560635"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/categories?post=560635"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vrbusinessbrokers.com\/vrbbgreenbay\/wp-json\/wp\/v2\/tags?post=560635"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}