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What are the Differences between Going Concerns and Start-ups? Everyday when you go through the classifieds, you see a number of options in businesses for sale. When you are planning your own venture, you have to decide whether you are going to buy a going concern or start your own business. This is probably the most crucial question that you will encounter in the entire venture. As going concern is an existing business which has an established name in the market. Over a period, it has proved itself to be solvent. However in a new business venture, everything has to be started from scratch. You will have no established history or any guarantee of a specific return. You cannot base your future projections in terms of expenditure and income on any substantial ground as everything will be new. Moreover there will be no customer contacts or client base, both of which are essential for business. If you are keener for a going concern, then you have to wait for a long period, until you find your dream project. It is not like purchasing a house, and even you like a business for sale, you have to weigh all the pros and cons before making a move. Even though you like the product or service, the terms and conditions can restrain you from buying the business. You simply do not like the conditions. On the contrary, a start-up business can be initiated anytime. You need a good location plus a solid market potential. However unlike an established business you have no guarantee of profits. Even though you feel that the product or the service has good potential, you cannot be sure until and unless you see the market response. Moreover it is difficult to get finance for a start-up business. You will have to prove to the financial institution or the bank, that the business has good potentials. You have to convince them that incurring profit will not be difficult. As for the going concern, it will be easier for the purchaser to get a loan. Think about the kind of service you are interested in and then it will be easier for you to pinpoint on what type of business you want. If you are creating a new niche, then you have to start from the scratch to make your own brand. However it is always better to invest in mainstream businesses like newsagents and clothes shops. They have proved their mettle in the relevant fields and if you find such a business for sale, you can definitely invest in it. For more such business options you can simply log on www.BusinessesForSaleCo.com.
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Jamie P is author of this article on Mid Range Businesses For Sale. Find more information about Buyin Start Up Businesses here.
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