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When Buying a Business Makes More Sense than Starting Your Own

  • February 12, 2015
  • Written by

The bottom line is, entrepreneurship is risky. In recent years a lot of Canadians are opening up businesses: and they're not doing well for the most part. A 2010 Industry Canada study concluded that 30 per cent of small businesses won't survive longer than two years, and only half make it to five years. While daunting for some, this doesn't have to be you.

Being your own boss is appealing, who can deny that? There has never been a better time to start a business in Saskatchewan: we have the highest percentage of self-employed people in the country. And being self-employed or owning a business can be accomplished without having to start from scratch. If you live in Saskatchewan, and dream of "the day I become an entrepreneur," and often toy with the idea of changing your lifestyle then consider the benefits of buying a business that have advantages over starting your own:

1. Rural Saskatchewan is Swimming in Business Opportunity!

A lot of business operations in rural Saskatchewan have owners on the cusp of retirement; as a result their businesses are coming up for sale. Many new Canadians and out-of-province residents are moving to rural areas to capitalize on new-old businesses. Gas stations and restaurants are popping up and succeeding: all they did was exchange hands from owner to owner. The world population has tipped toward an urban tendency. All things considered, this could be an opportunity to be your own boss while escaping light pollution, integrating yourself into a homey community, and find excellent deals on housing.

2. Buying a business means access to financing

Loans, advice and training for starting a business in any area in rural Saskatchewan come with resources: Community Futures, for over 25 years has the know-how, loans, and support for new businesses and new business owners. Starting up a business is risky; purchasing a used business can mean fewer initial costs, avoiding having to put personal collateral on the line, better resources, equipment already included, and established customer relationships.

3. Don't worry about branding or clients

Well, at least not too much. Buying a business typically means you don't need to build up customer loyalty, or pay into branding and marketing to the same degree as a completely fresh business. Unless you absolutely need to rebrand, (which is always a good choice if the business is undergoing major changes or wants to recapture a dwindling customer base), everything is already wrapped up in a shiny package for you to take and go.

4. No Experience?

There are so many ways to become a business owner. One of the easiest is through franchising: consider it a "business in a box" model. For example, buying a Wok Box or a Booster Juice kiosk will cost you an estimated initial investment of $176-264 thousand dollars. All costs considered, the franchise overall is less risk than starting your own juice stand or wok grill. Franchises tend to have support systems that will provide a business plan template, and step-by-step support through the entire store build-out process.

According to Forbes, the three words you should factor in as most important when choosing a business are "net cash flow". The money talks, and so do the headaches that go with starting from the ground up—especially in large urban centres that are slowly becoming oversaturated with multiples of the same business. Rural Saskatchewan is calling, and it wants to talk business.

Interested in buying a business? For even more information and advice, download the ebook from Community Futures - "Buying a Business in Saskatchewan".

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