WHY BUY A BUSINESS

Reasons to Buy Instead of Starting From Scratch

Top down view of a coffee shop interior
1

The Business is Already Making Money

The average startup takes 2-3 years before it starts generating profits and reports show that 45% of businesses close within 5 years of opening, while 65% close after 10 years. An existing business has already proven itself as viable, and new leadership could take it to new heights.
2

The Product or Service Already Exists, Ready to Sell.

Benefit from the experience of others, and save valuable time and energy. An existing business has already researched and tested which products or services make sense for the market. While a new owner may still want to make changes, months (or years) finding the right mix of offerings could be avoided.
3

Financing May be Easier to Achieve

An existing business has a historical financial record, whereas a new business does not. From a lender's perspective, those documents can provide evidence that the business turns a profit which may influence their decision to offer financing.
4

A Knowledge Bank May be 'Inherited'

One of the most common reasons why businesses are for sale is because the owner is looking to retire. Typically, those owners have invested decades of attention, care, and calculated risks. A transition can inform the new owner about what worked, what didn't, and what can be tried again.
5

All the pieces are Already in Place

Existing businesses come ready-made with supplies, equipment, space, and customers! Avoid the months of planning and setup by walking into a business already in operation, complete with supplier and distributor relationships, name recognition, a loyal customer base, and opportunities for growth.
6

Staff are Already There

Canada is experiencing the start of a decades-long demographic shift, and the working age population is anticipated to decline for the next 10+ years. Recruitment and retention are top concerns for businesses, and competition to source talent is steep. An established business already has trained, experienced personnel who know the business and know how to work with each other.