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Why is it worth buying an existing company instead of starting a startup?

23 april 2023

Starting a startup is a popular way to start your own business, but it is not always the best option for every entrepreneur. Starting your own startup is a fascinating vision, especially for people with a lot of creativity and ideas for new businesses, but it requires a huge amount of time, money and energy to be successful.

Buying an existing company, however, can be a more stable way to start a business and can be equally attractive or even more profitable, depending on the situation and business goals.

Here are a few reasons why you should buy an existing company instead of starting a startup:

  1. Ready-made business infrastructure

When you buy an existing company, you get a ready-made business infrastructure, including a team of employees, customers, suppliers, systems and processes. With a startup, you have to build everything from scratch, which can require a lot of time, effort and expense.

  1. A well-known brand and reputation

When you buy an existing company, you also get a well-known brand and reputation in the market. With a startup, you have to build your brand from scratch, which can be time-consuming and laborious.

  1. Ready-made sources of income

When you buy an existing company, you get ready-made sources of income from existing customers and contracts. With a startup, you have to win new customers and sign new contracts, which can be time-consuming and laborious.

  1. Existing customer database

When you buy an existing company, you also get an existing customer database that you can use to grow your business. With a startup, you have to build your customer base from scratch.

  1. Experienced staff

An existing company usually already has experienced staff who are able to guide the buyer through the process of taking over the company. Unlike a startup, where the buyer has to look for employees, train them and hire them, buying an existing company means that the staff is already in place and ready to work.

  1. Company history

An existing company has a history, which means that its achievements, successes and failures can be reviewed. When buying an existing company, the buyer receives information about how the company has operated in the past, which helps in making decisions about the future of the company. It also means that the company is already well-established in the market, which can facilitate business development in the future.

  1. Lower risk

When buying an existing company, the business risk is usually lower than with a startup. An existing company already has a place in the market and a documented financial history, which allows for a more accurate assessment of the risks and chances of success.

  1. Easier access to financing

Buying an existing company can facilitate access to financing. With a proven financial history, it is easier to obtain credit or investment for further business development. In the case of a startup, you often have to rely on venture capitalists who expect high returns.

Summary

Buying an existing company can be just as attractive, and even more profitable, than starting a startup. A ready-made business infrastructure, a well-known brand and reputation, company-generated income, an existing customer database, and lower business risk are just a few of the reasons to buy a company.

About us

PlatformaInwestora.pl is an internet service that brings together users with interesting business and capital offers and investors looking for ways to invest their funds. Our service helps to raise capital, find a partner, finance start-ups, sell shares or entire companies, and presents interesting forms of investment. The portal reaches a wide range of investors, both Polish and foreign, and the number of industry offers puts it at the forefront of capital investment services. Our employees actively help to edit investment advertisements because the mission of the PlatformaInwestora.pl website is to realize the business goals of our clients and to help them conclude as many business transactions as possible through us.

author: Bartłomiej Dmitruk

 



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