With all the economic uncertainties regarding the UK (and the world’s) economy there are a lot of entrepreneurs who are concerned about where to put their money and know it is going to see a good return. Entrepreneurs are still seeing great upside potential in buying existing businesses for sale and growing them further. In this blog post we are going to go through the reasons why buying a business is a smart decision to make regardless of the outlook of the economy.
Existing businesses come with a proven track record
One of the most comforting things about an existing business is that they come with a proven record of trading in past years. Meaning that they would have gone and come through recessions and general economic downturns before. Consumer confidence surges in businesses that have been around for several years so perhaps the best type of business to buy during a recession is one that has survived and thrived through recessions in the past.
Less money needed for marketing with an existing business
The most important thing to do when running a business is making sure that the customers are aware of your business and understand the product or service that you provide. This can come in many forms of marketing such as online marketing, social media marketing to advertising on sides of buses and taxis! You will not need anywhere near as much money for marketing after acquiring an existing business as opposed to starting a business from scratch. This is due to the fact that people in the local area will already have a good understanding of the business that you have bought because they would have been trading in this area and will have built up good brand awareness.
Fundamentals of a productive company are already in place
There are many components that make a successful business. Brand awareness, productive staff, relationships with suppliers and good profit margins on products/services to name some of them. When you buy a business you inherit all of the work done by the previous owner, this is hugely beneficial for the entrepreneurs buying this business as it means that they don’t have to work as hard to get the business off the ground giving them more downtime. However it also means that you are more likely to have a profitable business within the first days and weeks of acquiring it, which would be unattainable with starting up your own business from scratch.
In conclusion
It is clear to see that buying a business is not only a smart investment in tough economic times but also when the economy is booming! If you are interested in buying a business for sale please click here.
