What Are The Advantages Of Buying An Existing Business

Bronwen Barnard

05 September 2025

Summary

If you are in a position to buy a business, you may be wondering whether it is better to start from scratch or purchase an existing business. While starting your own business can be exciting, there are many advantages to buying an existing business. This article will list 10 advantages of buying an existing business so that you can make an informed decision when it comes to your entrepreneurial journey.

Less Risk

Buying an existing business is much less riskier than starting your own business. The startup failure rate for newly launched businesses is extraordinarily high, particularly in South Africa. According to News 24, 70-80% of small businesses fail in the first five years because they run out of cash.

Buying an existing business provides you with a steady flow of income and an established customer base, which can help mitigate the risk of running out of cash and failing.

Solid Business Plan

A solid business plan is one that has been tested and proven to be successful. With an existing business, the business plan is already in place, and you can see the results of it. This means that you can assess the current strategies and make necessary changes to improve or expand upon them.

Established Suppliers and Vendors

Another advantage of buying an existing business is that the previous owner has already established relationships with suppliers and vendors. This can save you a lot of time and effort in finding reliable suppliers and negotiating deals. Plus, these established relationships may come with discounts or other perks that can benefit your business.

Easier Access to Financing

When buying an existing business, you can use the existing assets and cash flow of the business as collateral for financing. This makes it easier to obtain loans or attract potential investors, as the business is already established and has a track record of generating revenue.

Learning Opportunities

Buying an existing business also provides valuable learning opportunities for entrepreneurs. You can learn from the previous owner's successes and mistakes and use this knowledge to improve the business.

For instance, if you're buying a Salon business and do not have that much experience in the field, you can benefit from the previous owner's expertise and learn about industry-specific challenges and opportunities.

Existing Marketing Strategies

Marketing is an essential aspect of any business, and buying an existing business means that you're also buying the existing marketing strategies. This does not mean that you have to stick to the same strategies, but you can use them as a starting point and then tailor them to your specific wants and needs.

Buy An Existing Business Today!

The advantages of buying an existing business are quite clear. It's a great way to enter the world of entrepreneurship without starting from scratch. You have the opportunity to acquire an established brand, loyal customers, experienced employees, and proven systems and processes.

If you're interested in buying a business, have a look at our online sales platform, where we offer a variety of businesses for sale. You can also contact us if you have any questions or queries.

Author: Bronwen Barnard

More Buyers Knowledge Bank

Get the latest information, valuable tips and share in the professional knowledge of business experts on buying a business

Somsubhra Roy

Franchisor and Franchisee Relationship: A Breakdown

The relationship between a franchisor and a franchisee is probably one of the most important aspects of succeeding with a franchise business. One can have a fantastic business plan and concept, but if the relationship is not strong and both parties do not invest time and effort into the relationship, it is more likely that the franchise will not be successful.

Bronwen Barnard

E-commerce Business for Sale: The Benefits

Whether you’re looking into buying an e-commerce business for sale because you’re passionate about building up a brand or whether you’re in it for the money, it’s still a good investment. Buying an online e-commerce business is a shortcut to entrepreneurial success compared to building your own business from the ground up. This article will discuss why buying an e-commerce business is better than building one and how much an e-commerce business will cost potential buyers.

Bronwen Barnard

Buying a Manufacturing Business for Sale

There are several good reasons why a manufacturer or an entrepreneur might be considering buying another manufacturing business. Acquiring a manufacturer can help you secure your supply chain or even allow you to bring product manufacturing in-house. As part of a diversification plan to develop into new markets, you can acquire a manufacturing company with a complementary or competing product to assist you in securing your customer base.

Bronwen Barnard

What to Consider Before Buying a Franchise

Buying a franchise can either be the best financial investment you ever make or the worst. Therefore, it’s crucial to do your research and have the facts before investing. In theory, a franchise is a perfect way for up-and-coming entrepreneurs to have a successful business, without having to build one from scratch. Successful franchises usually already have a business model that works and a loyal customer base.

Bronwen Barnard

What Factors to Consider Before Starting a Franchise?

Starting a franchise is the answer to being a business owner without having to start from scratch. To begin your business, you simply follow the franchise business model and utilise the already existing brand equity. Doesn't it sound brilliant?

Bronwen Barnard

Car Wash for Sale

Have you been on the lookout for car washes on sale in South Africa? Look no further because Business for Sale has got you covered. With a full listing of business opportunities, business broking tools, valuations, knowledge sharing, and services, Business for Sale is the portal of choice for entrepreneurs.

Bronwen Barnard

Franchises Under R500 000 in South Africa

Franchising isn’t always the cheapest way to start a business, but luckily there is a growing number of franchising options in South Africa that don’t break the bank. Franchising is easily one of the safest ways to start a business as you already start with a reputable brand name and access to loyal customers.

Bronwen Barnard

"Cheap" Franchises in South Africa

Finding affordable franchises in South Africa can be very easy, thanks to Business for Sale. We already know what the benefits of owning a franchise are, and so naturally, the next best step is to find a franchise that suits your budget. Cheap food franchises in South Africa can be a little tougher to come across, as food franchises tend to be pricier. However, there are other franchises that can be bought into! Most Affordable Franchises in South Africa There are different categories that make for brilliant, affordable franchise options.

Bronwen Barnard

Supermarket for Sale

Independent grocery stores may find it a challenge to make a profit. Grocery stores make their profit based on volumes of customers. The Covid-19 pandemic put some pressure on supermarkets when everyone panicked about necessities like toilet paper. Supermarkets had to keep up with the demand, but also struggled under the regulations that prevented the sale of other regular items. Luckily, South Africa’s strictest lockdown levels have abated, giving most South African businesses the opportunity to pick up from where they left off.

Bronwen Barnard

Liquor Store for Sale

Unlike many other products for sale, alcohol is one that is not seasonal. People consume alcohol all year round, and liquor sales have yet to drop due to external factors that would typically affect other industries. This makes it a reasonably safe bet to invest in, and become a part of.

Bronwen Barnard

Advantages and Disadvantages of Franchising

When considering starting a business, you’ll need to decide whether you want to start from scratch, or if you want to join into a franchise. This decision will depend on your goals and vision. While it can be exciting to begin a business independently, it could also pose a few risks. A franchise brings with it a host of benefits that can’t be found when you’re on your own. We’ve done a little homework for you so that you can make an informed decision about which option is best for you. Take a look below at our lists of advantages and disadvantages of franchising:

Bronwen Barnard

Salon Business for Sale

The beauty industry is ever-popular in South Africa, and a great choice for buyers to delve into when looking into buying an existing business. Even after the decimating effects of COVID-19 on the economy, the beauty industry is standing strong, as people prioritise self-care. There are factors to keep in mind to ensure that you develop a successful business plan, before you invest in a salon for sale.