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[Josemendez]

Owing a business is achieved either by buying an existing bussines or starting a bussines from scratch .
Starting a bussines from scratch is not always easy as competition and high taxation can kill the business.
Buying an existing bussines is very costly and in most cases one may not be certain that he will cover the cost of purchasing the bussines with time .
Which among the two is better and safer way to own a business?

 

[Reznov]

i would go starting a bussines from scratch since you will have a knowledge about this business's bases ( to avoid problems in the futures ) , unlike purchasing an existing business , because in most of the cases , owners sell their businesses just because they went into failures ( people aren't dumb enough to sell something that generates a comfortable monthly income ) , paying ton of money in the beginning is to be expected , but you have to think about the future , the long term business .

 

[metagio]

Totally depends upon the business. If your market is limited by geography or needs a regular customer base for general profitability (haircutting salon for example) an established and liked business would be significantly easier than trying launch in an unfamiliar locations and needing strong marketing plan and budget. However, you never reallly know what you get unless you immerse yourself in all aspects of the business before you buy. Businesses looking to sell deliberately present the best possible financial statements, business outlook and market projections to maximize their selling price. Be wary.

 

[DirtyRich]

From my experience buying several websites, I can tell you that building from scratch give me more satisfaction. I am not always earning fast though but that makes the journey more colorful. I have 3 or 4 business plan under my sleeve right now and I think although it would be slow, I think in the end, these dreams will give me nice memories to remember.

 

[Brain]

Starting a business is never easy and this sometimes make people give up easily,so I will buy an existing business and inherit it's previous customers and leverage on everything that were already put in place.

 

[Josemendez]

Starting a business is never easy and this sometimes make people give up easily,so I will buy an existing business and inherit it's previous customers and leverage on everything that were already put in place.

This is so true but buying a bussines can be very risky as the bussines maybe declining and thus there will be no customer to inherit and no leverage as well. It is like a coin of two sides .

 

[metagio]

With an ironclad sales agreement, it is possible to avoid such misfortunes, but most sellers are not looking to warrant and maintain some liability. Hedging your purchase with some designer insurance might be possible. The rumor that Lords of London will insure anything appears to be true.

 

[alexxx]

It depends on if the business you buy has been set up well before your purchase. In most of the cases, starting the business from scratch is better.

 

[Feret]

I am always wary of a business that is already ready for sale, it is often sold because it is not profitable or it is difficult to compete with someone. Before you buy one, you need to weigh everything very well and think it over.

 

[KarthikP]

For both of these methods , you need to have funds to either buy the business or start a new business from scratch. I would prefer starting a new business with new ideas and preparations

 

[Banglashi]

it's really up to you since the way i ran a business is obviously different from how you ran your business. but you already made a choice since you thought that business are for sale since they failed already.

For me i will start from scratch a business that not so occupied like for example starting a traffic exchange business or viral mailer business is obviously will get you nowhere since the market is already filled with this type of business nothing left for you much to move even creatively.

But if you will buy another business, a thorough search must be made a well-kept research so you will know exactly what is the reason for the sale? I've known a person in another forum that bought a business just because the owner said he's already busy with other ones later to find out that the said business has unpaid members, so of course now he owns the business, he own the debt as well, he needs to pay those people that are unpaid by the first owner.

i would go starting a bussines from scratch since you will have a knowledge about this business's bases ( to avoid problems in the futures ) , unlike purchasing an existing business , because in most of the cases , owners sell their businesses just because they went into failures ( people aren't dumb enough to sell something that generates a comfortable monthly income ) , paying ton of money in the beginning is to be expected , but you have to think about the future , the long term business .

 

[Balint098]

If you know how to scale the bussines and keep it profitable, then buying an already existing business maybe a good idea. It's just a matter of preference mostly.

 

[Nour Moh]

It really depends. For instance, selling a forum like BeerMoneyForum will be better than starting from scratch. But only if you have that amount of money. But starting from scratch needs a lot of effort an time.

 

[Mbwolf]

I would prefer to start a business from scratch first to gain knowledge about it and learn more things
you can buy businesses when you don't have time to make one from scratch
like you already running so much things at the same time
and I guess here you need assitante

 

[SCAMEXPOSER]

You have a good point @Mbwolf though it is better to buy an existing business in environment that is highly competitive, it is very dificult to break even in such environment except you have resources for aggressive marketing.

 

[Mbwolf]

You have a good point @Mbwolf though it is better to buy an existing business in environment that is highly competitive, it is very dificult to break even in such environment except you have resources for aggressive marketing.

even if you buy a business in a competitve environement, maybe you can not running it like the past CEO's and the business fail
I believe that before to jump in a business you need to know it from scratch

 

[SCAMEXPOSER]

You may not know the scratch of the business, you just need to know the basis of the business and also have a good managerial skills to sustain and improve on the business.

 

[Reznov]

This depends from person to person but if I am to decide I'll go for a new business because I can start working on it from scratch and can do justice with my skills but if you're to buy an existing business you need to be careful of it's goodwill and bad debts.

Exactly you can also know the basics of that business and how it works from the beginning, most of people sell their businesses just because they are dead (makes no profit anymore or aren't successful at all) , or just don't know how to handle it .

 

[SCAMEXPOSER]

People who buy existing business also take into consideration some critical factors like location of the business, the duration, the financial status, the level of market acceptance and lots , expert don't just buy business.

 

[My%username%]

Depends on the quality of the existing business quality. Mainly, it's profit and reputation.