Why Buy an Established Business
Should you start your own business or buy a New Mexican business that is already established? Deciding between these two options may seem related, but in fact they are almost distinct processes. The decision hinges on the market for your product or service, the exclusivity of what you plan to sell, and your tolerance for financial risk. Estimates put the failure rate of start-ups at 40% during the first year. Only 20% survive beyond their fifth.
The Advantages of Buying an Established Business
Buying an established business provides you with a proven concept, a brand known in the community, and a solid base of customers and vendor relationships already in place. In addition to these assets, you often start off with all the equipment, furnishings, inventory, and real estate or a leased property that allow you to begin immediately earning an income. When you buy a business, you have a history of revenue generation that allows you to quantify the risk and helps secure financing.