Dont start it, buy it!

| Total Words: 493

Why should you buy a business versus starting your own? Here are ten solid reasons:

1) The success rate for businesses purchased is much higher than the success rate for a new business startup. Just ask your accountant.

2) An established customer base means immediate cash flow! Enough said.

3) It is much easier to find capital to buy an existing business than to start a new one. Why? See reason #2 above. Bankers are not dumb. They know the statistics. Bankers are much more willing to lend money when there is an identified source of repayment already in place.

4) Many sellers are willing to carry-back financing at very reasonable terms. Why? For income tax reasons. They would prefer to defer any gain over a longer period versus taking a gain all at once. And if a seller is willing to carry back any part of the purchase price, it tells you the seller believes that the business will continue to succeed under your management.

5) Projections for a startup are nothing more than an educated guess. Projections for existing businesses for sale are based on historical results. Which is more reliable?

6) Startups always, I repeat, ALWAYS cost more...

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