Business Performance Coach Greg Balank-Dickson writes recently about how, in his experience, it's always cheaper to
buy an existing business than to start one from scratch. He said net profits on his
existing small business were DOUBLE.
His points are:
- You don't have the expense of beginning advertising and marketing to get a customer base. You already have a customer base that you can start building on immediately.
- Working with real life information about the business you can make changes that will cut expenses and improve profitability.
The purchase price was the same. He said he spent "$750,000 to buy the business, pay-off the note in just 10 years ($750,000 @ 5% interest rate)" and he got a better before-tax rate of return than from an existing business.
Read this article from USABizMart on the benefits of
buying an existing business.
If you have any feedback or experience with the cost of buying an existing business compared to starting up a new one, please comment or email us at bizsalesinfo @ gmail.com.
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