If you are determined to start a business, the next decision you have to make is whether to buy an existing business or start a new one. There are pros and cons to both options, but I personally recommend buying an existing business in Australia, especially for newcomers.
— Barton, Senior Business Advisor
Buying an existing business or starting a new one.
Purchase vs. Create Your Own
There are many benefits if you buy a ready-made business now, such as:
With cash flow right out of the gate and not having to stick your own money into your business, you will feel secure and can focus on improving your existing business. Australian customers are generally more loyal and actually lazy to choose and rest on their laurels. If you are opening a new store, you need to advertise to let people know you, and slowly you will be able to build up your reputation and have more and more customers. If you don’t have much experience, and you have few customers when you open a store, and you have to pay rent, utilities and staff wages every day, it’s really a panicky thing.
Low risk and certainty. Actually, one thing that makes buying a ready-made business better than creating your own business is that it solves the problem of certainty. If you open a new store, whether your brand new products and service model can be recognized by customers you don’t know, whether the style of your decoration or the location of your business premises is suitable you don’t know, and if you are not experienced enough, once you step on the mines and fail it is a total loss. A bought business, on the other hand, usually has ready-made customers and suppliers, good financial records and systems, renovated premises and ready-made experienced staff. You don’t have to start all over again with government approvals, renovation design, decoration and construction, all of which are time-consuming and laborious; you don’t have to call or email suppliers one by one to talk about the price of goods and payment terms, and the sellers will hand over the previous conditions to you; ready-made business has its own sales management system, scheduling, you just need to operate according to the previous system on the line, and then slowly improve and innovate later on; and if you are lucky, the original employees are willing to continue to work with you. The original staff is willing to continue to work with you, you do not have to rush and busy to recruit people, if no one work to open the door to a black that is not miserable after opening the store.
With a large number of businesses for sale under the epidemic, it is often cheaper to buy a ready-made business than to set up a new one yourself, and even more so when you consider the cost of time. All of the equipment and fittings can be bought back cheaper than brand new by taking over an existing business.
There are certainly a number of places where buying a ready-made business is bad. For example:
The business has issues or problems that the owner isn’t talking about, such as a move soon or a very strong competitor coming over to open a store soon. If you don’t do your research and don’t find out, taking over could be big trouble too.
Business is more dependent on the individual seller-owner. For example, the boss is a Cantonese, customers are Hong Kong people or old Guangdong, you as a buyer is to speak Mandarin, language and cultural practices are different, it is difficult to mingle with customers, business must not do well. Or the seller boss is too capable too charismatic, such as the boss himself is a coffee hand business is good enough, after changing into you customers just do not recognize.
If you start your own business, despite all the hassles, there are so many benefits too! For example:
You can give full play to your own ingenuity, everything can be at your disposal. What kind of business to do, where to choose the site, how to decorate how to design, what kind of goods to buy, what kind of people to hire, how to set the internal management process, all these can be decided by you. Fully satisfy the sense of achievement of entrepreneurship
Business records are clean and trouble free. You don’t have to worry about what customers or vendors the original owner has offended, or if he has had trouble with unpaid bills and wages.
It’s not easy to run a business for newbies and the success rate is low. I strongly recommend that newbies reduce their risk as their first consideration and try to buy a ready-made business. Even buying a franchise business and making less money is much more cost effective than just failing to liquidate the business. The most important thing is that you can know the strengths and improvement programs of this business by observing and learning from it. Whereas if you build a business of your own, your enthusiasm and ideas for remodeling may be worn out as you start the process of running the business and never have the experience to change much again.
Postscript:
The percentage of Australians who are unemployed has risen, and there was a fear that no one would go into business in a bad economy; but now it looks like a lot of people are having to go down and buy businesses.
–Message from Xiaozhi