To be outgrowing in the market, one needs to have out-of-the-box ideas. You need to be creative and strategic to stand out in a profitable position, solve your customer’s issues, and come up with products or services that the market demands.
Now there can be two ways. Either build your own startup that involves proper planning, staffing, and implementation or buy an existing business having everything already designed. You just need to add your efforts to the same brand you are picturizing in your mind.
So here, we will explain the various benefits of buying an existing business and its outcome.
You already know the Market Demand for the Product or Service
When you buy an existing business, you already know that it has a good reputation in the market and its product or service is in high demand, so it becomes easier for you to reach the mass since a certain number of people is definitely going to visit this place and would continue to do so if they receive the same quality of service. So it is very important to conduct due diligence knowing that the product or service is well maintained and served and be a part of your decision. So while choosing any business that is on sale, check carefully if they have a good reputation in the market or not and act accordingly.
Reduces the Pre-Start Up Works
Buying an existing business not only gives you the idea of its Market demand but also reduces your work and saves time and cost on its Advertisement and other pre-selling activities like selection of suppliers, purchasing of raw materials, Inventory, proper staffing at the right place, selecting a proper place for the start where all your requirements would be of easy access and reaching the customer, etc.
You will also benefit from trained staff members, good bonding with the suppliers, a fixed customer ratio, proper time schedules, and protocols. The owner has already given their heart and soul to make it stand in a reputed position. You may require to hire additional staff or buy upgraded equipment as per your requirement, but mostly all these are done so you can focus on the profitable aspects of the business.
Reputation and Branding
Acquiring a reputed business would help reach the mass since many times new startups face a lot of difficulties to expand or gain attraction in a crowded market area because of other existing business that has already gained success. So when you buy existing ones, you are already inheriting their brand name and success rate and also the market share, which will be a considerable part and will save your cost and money.
Secured Business Financing
As previously explained, branding plays a major role in Business. Not only to create faith in the Customer’s mind, but it will also be easier to get loans from a bank. Business Acquisition process would not be troublesome as the lender can check the history of the Business’s finances. The lenders will find it less risky to grant the loans, having seen a healthy prospect of the Business. So a good reputation in the market would help increase profits and make other business-related documentation easier.
Loyal Customer base
Since this is an ongoing business and it has earned a lot of customer base serving the best products or services, this will be easier for you to attract more customers with this feedback where new startups lag or face the struggle to earn this. This will lie in your hand to make it a prospect in the future and help in standing in a good position.
So selecting a good business on sale requires a good market assessment. This will guide you whether you will be in a Profitable position or would increase your liabilities more because of any bad reputation. Considering the above facts would be of big help.
Bowarr Management DIFC has nearly 25 years of experience in the UAE to deliver most comprehensive market research and provide you with most accurate business valuation. This, combined with our extensive knowledge about a wide array of industries, ensures that we have all the answers to all your questions related to UAE businesses. We provide premium corporate advisory those who value and understand the value of data. Get in touch with our professionals soon.