Illinois businessmen and businesswomen who would like to own their own business have two options: start your own business or buy someone else’s. There is a certain sense of pride that comes along with becoming an entrepreneur, formulating your own business idea, and starting from the ground up. However, people often forget the number of benefits that come along with purchasing a business and becoming its new owner. Before deciding which plan you would like to use, it is important to have the following practical considerations in mind.
The Comparative Costs of Starting and Buying
There is no single price tag for starting or buying a business. The costs can greatly fluctuate depending upon the industry, business plan, timing, and more. Before making a decision one way or the other, consider the costs of each. When starting a business, you will need to spend time and money looking for a suitable location, employees, means of production, advertising, and much more. If you purchase an existing business, many of these details will already be nailed down. While you may still wish to adjust some of these details, you can choose to do so over time when you have adequate funds in place.
Immediate Cash Flow
Purchasing an established business means that existent customers are already in place. You will not have the in-between time spent funding your business with no customers to help cover the costs. The immediate customer base that comes with buying a business can make the transition of taking on new work much easier. Based on the number of your newly purchased business’ customers, their business can help cover the costs of any bank loan, take a reasonable income for yourself, and have a slight cushion for future growth.
Existent Brand Recognition
One of the biggest challenges of starting a new business is getting the word out there about your business. Consumers are constantly bombarded with marketing advertisements, especially on social media platforms, so creating brand awareness and recognition can take significant amounts of time and money. By purchasing a company that already has brand recognition, you skip over this business challenge from the get-go, allowing you to focus your efforts elsewhere.
Team of Employees
Finding a team of qualified employees who fit your business’ mission and needs can be very time-consuming. Not only do you have to take the time to read through applications and conduct interviews, but you will also need to train every new employee and allow them to become familiar with their new work environment and systems. By purchasing a current business, you will already have a team of workers set in place who are experienced with your services or products.
Contact a DuPage County Business Attorney
If you are still unsure about whether purchasing or starting a business is best for you and your future, speaking with a reputable business attorney can help lead you in the right direction. Regardless of the path that you take, a legal professional’s advice is critical for your business’ success. At Shakfeh Law LLC, our accomplished business lawyer assists clients through every aspect of building and maintaining a successful business. From formulating and reviewing contracts to expanding and franchising your business, our dedicated Oak Brook business lawyer will guide you through the legal steps while protecting your best interests. Contact our firm today at 630-517-5529 to discuss your options.