Acquiring a business is a milestone event requiring not only financial but personal investment. We want to be sure each purchase is a good fit for both the buyers and the sellers. Bluegrass Business Advisors can help you reach your goals by introducing you to businesses that meet your needs, motivations, and financial wherewithal.
When thinking about starting a business, most people envision starting from scratch — developing a product or service and building a business around it “from the ground up”. But starting out this way presents some distinct disadvantages: the difficulty of building up an initial customer base, getting out the word on your new product or service (marketing), hiring and training employees, and securing thr right location — all without an established cash flow, track record, or reputation.
Most of the time, purchasing an existing business is far less risky that starting from scratch: cash flow and profits are already in place, customer base and reputation are established, employees are trained and on board, and procedures, systems and policies have already been put in place. You don’t have to reinvent the wheel. The downside, however, is that an existing business often has a higher initial cost than a startup. This higher cost is offset by the immediate cash flow an existing business provides and the availability of financing, usually from the seller. While no business is a sure thing, buying an existing business can increase your chances for success.