Question

Highlight some advantages of buying an ongoing business.

Answer 1

Advantages of buying an ongoing business:

• The difficult start-up work has already been done. The business should have plans and procedures in place.
• Buying an established business means immediate cash flow.
• The business will have a financial history, which gives you an idea of what to expect and can make it easier to secure loans and attract investors.
• You will acquire existing customers, contacts, goodwill, suppliers, staff, plant, equipment and stock.
• A market for your product or service is already established.
• Existing employees and managers will have experience they can share.