Briefly describe the advantages and disadvantages of buying an existing business. Question 42 options:

84 1

Get full Expert solution in seconds

$1.97 ONLY

EXPERT ANSWER

Buying an existing business can be a advantage and sometimes can be a disadvantage as well. So before buying any existing business we should consider all the market factors on the basis of which we can evaluate the existing business. Some of the advantages and disadvantages of buying existing business are:-

AdvantagesDisadvantages
Most of the groundwork to get the business up and running will have been done.You may need to invest a large amount up front.
Easier to obtain finance as the business will have a proven track record.The business as a whole might not be doing well and the situation might not improve in future as well.
Get an established customers with a reliable income.The equipment is old and outdated.
A business plan and marketing method should already be in place.The owner may possibly be dishonest about the business.
Existing employees should have experience you can draw on.The location may be bad or likely to become bad in near future.