Never start a business by buying an existing business

Never start a new business by buying an existing business. You need to figure it out first how things are done right. You will know what works and what doesn’t work.

Expanding a business by buying an existing business is the best option because you can spot very quickly if the owner is sugar coating anything to close a sale and sell the business.

Here are the pros and cons

Pros

  1. You will get an already existing customers base

  2. You get an existing operation systems in place.

  3. Getting a prime location at a cheaper rent if the business has existed for a long time

Cons

  1. The seller will hide everything that went wrong or anything negative in regards to the landlord, suppliers and clients

  2. You will figure it out what went wrong after buying the business like understanding which are the fast moving and dead stock, the clients who don’t pay debts, cases of paying the rent late and unpaid suppliers following up their debt.

The Cons have it. A very risky venture to undertake

Inheriting customer base ni tricky…depends on type of business. If its a big business with a national reach ni sawa…but kama ni local, say a butchery, then itakua ngumu. Mutura yako au choma yako will never be the same and people will either stick around or leave depending on the quality you bring in

I hear you on the caution about buying an existing business. I remember considering a similar move when I was thinking about expanding my own venture

In hindsight, I’m glad I took the time to build my business from scratch. It allowed me to learn the ropes firsthand and avoid any hidden pitfalls. Plus, I could tailor everything to fit my vision without inheriting someone else’s problems.

Exploring options like vrbuckscounty.com could offer a more controlled way to expand, allowing you to maintain transparency and minimize risks. It’s all about finding the approach that aligns best with your goals and comfort level.

Consider It’s lower failure risk . Because it has goodwill, is operating, has clients and customers, employees, systems, suppliers, and financial history, a location or locations, plus you may be able to get the seller to finance it – buying an existing business is without question inherently less risky than starting one from scratch.
The problem in Vumbistan is that small businesses are based on local customer loyalty. Patrons may be soliciting it because they have some affinity with that family owning it. Once they leave, they have no interest in the structure unless it’s a necessity they can’t do without.

2 Likes

One of the few sober posts that @cortedivoire doesn’t use a phallus to type with.

2 Likes

I would argue that buying an existing business is just as risky if not riskier than starting a new one, especially if you have no experience running a similar business. Why? People rarely sell cash cows. If a business is on sale, it’s probably not making money.

Personally, the only reason I would buy an existing business is to get the prime location (prime locations are incredibly difficult to get), not to continue with the existing business.

2 Likes

You obviously do your due diligence by looking at the balance sheets and physical presence to back up the claims