03/06/2024
I agree with the notion that buying is better than starting up.
Why -
I have spent a lot of time helping budding entrepreneurs try to start business from scratch using borrowings from banks and development finance institutions. Invariably the rejection is linked to proven sales and questions around the business model and when will the business breakeven.
Conversely -
I have struggled with buying of existing businesses because reaching an acceptable valuation. The seller is usually over optimistic over the future of the business (most sales are made under duress) and the buyer trying to get the lowest the price possible.
However -
Overall, it is definitely easier to convince a funder to lend for the purchase of an existing business as there is a proven client base, business model (albeit that it needs fine tuning), financial records and cashflow.
So, I look forward to helping you with the next business investment you are making.
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