Buying An Existing Business at Buying

Buying An Existing Business. Buying an existing business will allow you to evaluate its cash flow and operating expenses, giving you a better idea of how much investment capital you will need. By acquiring an existing business, the basic infrastructure is already in place, including technology, real estate and business relationships in the supply chain.

You can start your search with your interests and expertise. Buying a business copyright 2002 prentice hall publishing company 15 earnings approaches variation 1: Hundreds of thousands of companies are reportedly sold to new owners every year.

You will need to know the advantages and disadvantages of buying an existing business and be clear about your ability to run a business. But being a better option does not mean it’s easier. After all, it’s estimated that “30% of new businesses fail during the first two years of being open, 50% during the first five years and 66% during the first ten.” 1 Businesses that have a good business history are likely to understand how to run successful operations.