WHY BUY A BUSINESS IN TODAY’S MARKET?

There is no doubt that the economic downturn has made many potential buyers reluctant to move forward to purchase a business. But in many ways, this is the best time. Because most people are nervous and unsure of what is happening, it is much less likely that new competition will open up until they are sure the recession is over. This means that someone buying an existing business, is unlikely to face competitive pressures for some time.

When the economy is growing and there is more good news than bad news, many people open a new business in competition with those that are successful, knowing that even if they get a small piece of the pie, the pie is getting bigger and bigger. There is much less risk involved when the economy is growing.

Even if there is new competition, it costs a lot of money to start a business and to market and get new customers to the point that it’s making money. It is probable that the new business will not be able to survive, as they are not only opening in a challenging market, but trying to grow the business. Also they are probably making many mistakes because they are new, and have to figure out what works and what doesn’t. As most business owners will attest to, there are many mistakes, most of them costly, in the first few years of opening their business.