Buying an established business

[Teflon_Mcgee]

What are everbody's thoughts on buying an established business?

Particularly if you have little to no real experience running a business?

Is it a good alternative to starting one if you have no idea where to begin and good capital ($100,000-$200,000 free and clear.)

 

[Francisco d'Anconia]

Dude, you should never buy anything (especially investments) which you don't understand.

Alright, that advice will cost 'ya $100,000... You seem to be loaded...

 

[STR8UP]

Pros-

1) You can easily leverage the business from an existing owner. most people expect to only put down a percentage and the owner holds a note for the rest. Conserve your cash! you will likely need it.

2) Training. Especially if you have never ran a business before

3) Proven concept. Less risk.

Cons-

1) A business owner can manipulate the books to make a buisiness appear to be more profitable than it is.

2) You will pay a premium for an established, profitable business.

3) you don't get the satisfaction of creating something from scratch.

Business is tough and it's a huge responsibility. I wouldn't recommend making a commitment until you know what it entails. Start small. you might find out that you love it, but at the same time you might hate it.

Remember- it's MUCH easier to buy a business than it is to sell it. Keep that in mind before you commit to anything.