Strategic Planning Consultants Orangeville ON

There’s more than one way to succeed as an entrepreneur. Beyond starting up a business – witness our brand name! – you might be able to buy an existing business instead.

And in case you’ve dismissed the idea of buying a business because of the up-front money it requires – the same money you already blew on your brand new car – think again. With some creative financing ideas, you might be surprised what you can afford.

Here’s some vital info about choosing a business to buy and whether it’s for you:

The business is a known quantity: The best argument for buying an existing business is, well -- that it’s an existing business. In other words, it’s got a book of customers, a name or brand, probably some physical assets, relationships with vendors, likely a line of credit, an established market, some experienced employees, and all the other things that a startup lacks. It’s the basic idea behind a franchise opportunity as well.

“It’s also much easier to value an established business than a sheer concept, because you have data to work with,” says Rita Gunther McGrath, an associate professor at Columbia Business School and co-author of MarketBusters: 40 Strategic Moves that Drive Exceptional Business Growth.

You might be asking the obvious: If a business is any good, why on earth would it be for sale? “Death, divorce, illness, retirement of the owner – those are the most common reasons,” says Richard Parker, president of DIOMO Corp.

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