Starting a business from the ground up is definitely what comes to mind for most people. Seasoned entrepreneurs and experts will, however, agree that backed with proper due diligence, buying a business has numerous advantages over starting one. Even then, the reality of nothing ever being a certainty remains, although the odds are quite attractive.
Lending institutions are much more willing to extend loans for buying an existing business than funding a start-up. Start-up failures are overwhelming and by their assessment, buying a business attracts less risk.
Buying into a Brand
Much like any other niche, penetration into the road sweeping industry as a new player can be quite challenging. Buying an already operational business that has built a reputation allows you to tap into the networks established. Marketing campaigns are not nearly as intense or costly as for a new business, because the business already has an established client base.
Similarly, you enjoy the benefit of a mutually beneficial professional relationship with suppliers and other service providers. You will have an easier time when you wish to expand your operations and add a new fleet of road sweepers. Quality and great prices are a guarantee.
The hiring process right from recruitment, selection, hiring to the final placement can be tedious and a drain on time and other resources. Initial training may also be necessary. Those are challenges a new business will have to contend with.
Depending on the terms of the sale agreement, buying a business means buying its greatest asset; the people. People who have the expertise and the relevant work experience to help the new owners in accomplishing their goals for the company. The team is familiar with all road sweeping routes and great with the equipment and no training may be required.
For a new owner who is not too conversant with the hands-on operations, the employees may come in handy in getting him/her caught up.
Time is a valuable asset for any entrepreneur. While the owner of a new business seeks to acquire capital equipment, come up with the perfect marketing plan, create a brand and hire the most suitable workforce, an entrepreneur that buys an existing operational business will direct the resources towards improving the business and increasing the profits. The road sweeping industry is competitive and any time spent on activities that do not directly generate some cash flow for the business could be a real threat.
Buying a business has several merits over starting your own. It has proven a better fit for road sweeping companies as well as other businesses in different industries.
If you would like to go into the sweeping business, please contact us today.