One of the cheapest ways to start a business is just to do it all yourself and build it from the ground up. You can put in as much time and money as you have, letting things grow over time until your business fully supports you.
Another option, though, is simply to buy an existing business. This may massively increase the amount of start-up money that you need, and it means your investment needs to start paying out right away. But are there any advantages that make this a viable strategy?
You may earn money more quickly
One upside is that you may see yearly profits a lot faster — even in the first year. Many start-ups actually lose money or at least just break even. If you want a stable income right away, buying a business that already makes money is a good way to get it.
You already have brand recognition
Brand recognition often holds new companies back. No one knows who you are, even if you’re doing a phenomenal job. If you buy a business that already has some level of recognition, all you have to do is build on it.
You have a proven business model
When you know that the business works — and you just want to make it even better — that gives you confidence. The model has been proven. The old owner did market research, for instance, and tested out the product. They hired employees. They made mistakes and fixed them. You can jump ahead of all of those steps.
This process can be complicated, and you need to make sure you do it properly to give your business the best chance to thrive. Learn about the legal steps you can take moving forward.