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Buying a ready-made business: advantages and disadvantages

Buying a ready-made business with its advantages and disadvantages worries many people. Today there are many who see the future exclusively in business projects.

In this article, we will cover all the advantages and disadvantages of buying a ready-made business.

The advantages and disadvantages of buying a business

Before you invest in a business, it is wise to research all the nuances in detail. The advantages of a ready-made business include:

  • profitable earning scheme;
  • staffed with specialists;
  • ready-made working room;
  • proven cooperation with suppliers;
  • customer confidence;
  • the possibility of conducting an analysis in relation to its profitability.

It should be admitted that it is much easier to enlist the support of investors or get a loan with a ready-made business than when developing a business from scratch.

The disadvantages of buying a ready-made business include the following factors:

  • workers may turn out to be unskilled specialists;
  • difficulties in reissuing documents;
  • lack of demand for the goods being sold now or in the future;
  • unsuccessful finding of an enterprise or office, entailing material waste;
  • the risk of signing an agreement with an unscrupulous supplier.

It is important to remember that a person who is trying to sell you a ready-made business will probably not talk about certain problems, but, on the contrary, will only talk about good or imaginary benefits.

Why can an entrepreneur sell a business?

Before buying a ready-made business, you need to try to find out the true reason why a person wants to sell his business to you. Agree that if the project brings good income, then the owner is unlikely to want to get rid of it.

The main reasons for selling your own business:

  • complete cessation of business activities;
  • unprofitable production;
  • change of priorities;
  • lack of entrepreneurial "vein".

Taking into account all of the above, it is necessary to add that a business that was unprofitable for someone, in your hands, can start to make a profit. And, conversely, having bought a successful business project, you may find yourself bankrupt just because you are not a professional in this field.

For a losing business to be profitable, the buyer must have ideas, knowledge, and finance. Often a businessman has to wait several years for his brainchild to start generating income.

Where to buy a business?

You can buy a ready-made business through agencies, the press or on the Internet. Today, on the Web, you can easily find various Internet sites specializing in buying / selling.

When you appreciate all the advantages and disadvantages of a ready-made business, you still want to make a deal, try to adhere to 7 simple rules:

  1. Determine the value of the business.
  2. Consider all your options.
  3. Discuss all the nuances in a personal conversation with the seller, not forgetting to find out the real reason for the sale of the project.
  4. Conduct a thorough analysis of the information received.
  5. Study the suppliers.
  6. Analyze the internal process of the enterprise.
  7. Make a purchase / sale with a notary.

As of today, it is possible to buy a ready-made business either gradually or simultaneously. The seller makes the buyer his receiver, placing all the control levers in his hands.

List of documents for self-verification of the company:

  • certificate confirming individual entrepreneur or LLC;
  • certificate confirming registration with the tax office;
  • assigned OKVED codes;
  • stamp and Articles of Association;
  • documents on the lease or purchase of premises of a company or firm.

Watch the video: Disadvantages of LLC When NOT to Use One (June 2025).

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