7 reasons why buying a business is better than startup

Buying an established business means that you are one step ahead than the entrepreneurs who just started so it is always better to take this hard find opportunity. Let's see some reasons why this opportunity is better.
  • BY Akshay Arora

    Feature Writer, BusinessEx

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  • Feb 06,2018
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  • 9 Mins Read

Buying an established business is always better than starting up because to begin from start is the most challenging task that most of the entrepreneurs unable to pass. But buying an established business means you have everything and now all you have to do is know how to take it to next level. There are varied reasons that why you should start your own business so let’s take a look at the few reasons that why you should select this way. 

Customer Acquisition

It is tough and time-consuming for startups to build their customers but if a business is established then their customer base is already there and entrepreneur just needs to do is expand it. The cost it takes in building customers is high in startup but in established business one can use that capital for other purposes.


The investment seems more in established business but it is only one-time payment but in a startup, one needs to constantly invest in the business to fulfil their basic needs and until they find investors. By buying a business you can cover your cost within a short time span but in a startup, you never know whether you will be able to cover it or you just need to incur more of it.


Everyone says a startup grows faster than any other business but no one thinks that the profits they get are utilised only in business development. Unlike a startup, an existing business grows at a lower rate but the profit you earn can be utilised for business as well as for personal use. A startup needs capital from time to time because it’s developing but a business is already making constant earning so entrepreneur need not worry much.  

Easy Money

This opportunity is better and feasible option for entrepreneurs planning to start their own business. As everything is in a function so an entrepreneur can start generating funds in the beginning but a startup generally remains in a loss in its initial stage. You can earn easy money by buying an existing business.


While starting up all you have is your idea so you have to build the network on your own. But a business which is in operation for a few years then it must have a network which may include vendor, employees, wholesaler, etc so you don’t have to worry about beginning from start.


There are high risks in starting up as you are never sure of it that whether your idea will find success in the market or not. But in an established business you already know what’s the demand and your target market so there is lesser risk of failure. Always remember while buying a business you should do due diligence so that you can minimise the risk by knowing the actual state of the business.

Legal Issues

There are legal formalities in both the cases but in the transfer of ownership, it is much easier as all you need is consent of the buyer and the seller. Although legal formality for starting up a business is not a difficult procedure but its time-consuming.


These reasons clearly state that buying a business is much better than starting up but that decision solely depends on you. Once you have decided to buy a business then you must not worry about finding a business opportunity as there are online networking platforms like BusinessEx that are catering especially to this need of the consumers.

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