Advantages of Buying An Existing Business
- It may continue to be successful
- It may already have the best location
- Employees and suppliers are established
- Equipment is already installed
- Inventory is in place and trade credit is established
- You can “hit the ground running”
- You can use the previous owner’s experience
- Easier financing
- It’s a bargain
Disadvantages of Buying An Existing Business
- It’s a loser”
- Previous owner may have created ill will
- “Inherited” employees may be unsuitable
- Location may have become unsatisfactory
- Equipment may be obsolete or inefficient
- Change and innovation can be difficult to implement
- Inventory may be stale
- Accounts receivable may be worth less than face value
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