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Buying a Business PDF Print E-mail
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Monday, 08 August 2005
Buying a Business

While many people are excited and thrilled about the idea of running a small business, some find that in dealing with all of the details—business plans, investors, legal issues, etc.—associated with new start-ups, they often lose interest.  Therefore, buying an existing business is often an option that has proven simpler and safer alternative.


Advantages
  • Drastic reduction in start-up costs of time, money, and energy
  • Immediate cash flow because of existing inventory and receivables
  • Pre-existing customer goodwill
  • Easier financing opportunities

Disadvantages
  • Financial costs of acquiring an existing business is usually greater than starting one from scratch
  • Hidden problems associated with business and receivables that are valued at time of purchase, but later become non-collectable
 
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