Business Startup Alternative: Buy an Existing Business

Starting a business from scratch – home business or small business – is often an iffy and possibly pricey process.  Legal issues, licensing, permits, location, building a customer base – to name a few – are time-consuming with no guarantee of success.  Even if launching goes well, the break-even point could be some years away, even with the best of research and planning.

There are other options for would-be entrepreneurs: buying an existing franchise or business.

Purchasing a current concern has advantages and some drawbacks also.  We’ll step back from the ‘yeah – that’s it!‘ moment and examine the issue.

Why to Consider a Purchase

Ideas – you suffer from a lack of solid business ideas for a geographic area, level of expertise or interest

Age – when laid off after a certain point, age discrimination exists.  Period.  Consulting may be an option, but you are not likely to be a new hire at 60.

Opportunity – that little corner cafe you’ve always loved is up for sale and makes great muffins …

Income – retirement income may not be enough.  Do you need to supplement?  A business income may be appropriate.


Money – when starting any business, some amount of money is needed.  Reserve funds are important to have in case of emergencies.  Upfront capital may be necessary too.

Tax advantages – part of a purchase may be financed with ROBS or Rollover as Business Start-up.  This takes money from a 401k plan and invests it in a new venture.  The regular early withdrawal penalty doesn’t apply in these cases (check with a qualified professional to confirm).

Paperwork and due diligence – ensure you are getting the best deal by working with a broker or carefully researching the market, the customers, the vendors, and the legal options. 

With the global economy still mired in mud, the business market is a buyers market.  Are you interested?  Here are some good resources to start with:

International Business Brokers Association or

Buying businesses is an excellent alternative to starting one up, provided the time and circumstances are right.  Take a look at the idea, it may be worth your time.

By Dion D. Shaw

Dion Shaw is the founder and owner of Homepreneurs

Homepreneurs.  New day.  New Opportunities.


Homepreneurs does not endorse nor have any relationships with any of the services listed.  Homepreneurs receives no compensation or consideration for its suggestions.  Homepreneurs strongly urges all interested parties to conduct research and accepts no responsibility for any losses incurred.

© Homepreneurs 2010 – 2012


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