Why are more people considering buying a business?
Posted on: 11 February 2014 (updated on 23 April)
When deciding to go into business, most people automatically think of starting up on their own. But how many consider the alternative - buying an established business?
According to BusinessessForSale.com, a leading website for company sales, there has been a 20% increase in people enquiring about buying a business over the last quarter in 2013 compared to the same quarter in 2012. They also suggest that 2014 will be a boom year for business purchases. Why?
Perhaps, as the economy teeters on the edge of recovery, potential business owners have more confidence in investing in buying a business. Even though it can take several months to complete the purchase process, this might be quicker than if you’d started from scratch. The hope is that you can reap the rewards of increases in economic activity sooner.
Alternatively, it may be because lenders and investors are finding it easier to fund acquisitions rather than start-ups. New businesses are by their very nature risky, whereas established businesses have track records upon which to lend. With ever mounting pressure on banks to support small businesses, potential buyers could feasibly be reacting to lenders’ bias towards less risky ventures.
But just because more people are enquiring about buying a business, doesn’t necessarily mean that more are actually being bought. And finding figures to tell us either way is surprisingly difficult.
Either way, its great to see that more people are exploring their options for how to start their business. Let’s hope they’re considering all the advantages and disadvantages so that they can make the right choice for them. For more information, both StartUpDonut and Business Gateway have content to support budding entrepreneurs navigate this minefield.
source: www.thisismoney.co.uk. www.businessesforsale.com
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