Buying an Existing Business.

Buying and existing business, often a simpler and safer alternative, provides some real advantages.  The business structure, operations and staffing are in place.  The location is established and the business has a customer base.  A new owner may decide to take a new direction or make significant changes.  However, a major benefit is that cash flow is available while making these changes.

Before purchase of an existing business, an accountant and attorney should be contacted.  It is important to review the financial records, operating history, and various legal issues surrounding this business entity prior to making any commitments to purchase the company.

Many new entrepreneurs choose franchising as an alternative to starting a new, independent business from scratch.

A franchise is a legal and commercial relationship between the owner of a trademark, service mark, trade name, or advertising symbol and and individual of group wishing to use that identification in a business.  The two primary forms of franchising are (1) product/trade name franchising and (2) business format franchising.  The franchise governs the method of conducting business between the two parties.  Generally, a franchisee sells goods or services supplied by the franchisor or that meet the franchisor's quality standards.

Franchising is based on mutual trust between the franchisor and franchisee.  The franchisor provides the business expertise, marketing plans, management guidance, financing assistance, site location and training that otherwise would not be available to the franchisee.  The franchisee brings to the franchise operation the entrepreneurial spirit and drive necessary to make the franchise a success.

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