Purchasing an existing business is an option for Maryland residents who would like to become business owners. Before going ahead with the purchase of an existing business, however, it us important to consider the benefits and drawbacks of purchasing an established venture. Although there are many advantages of buying a business that has already gone through its startup phase, the disadvantages could give some potential buyers pause for thought.
The obvious advantage of purchasing an existing business is the fact that startup costs will be significantly reduced. An existing business may already have inventory, a trained staff and a loyal customer base. If the business is profitable, the new business owner might also gain immediate access to cash flow that can be used for any improvements they would like to make to the business.