Before starting up a new business, look for an existing business for sale in websites like thebusinessplace.com to see if there is a similar business for sale with cash flow already in place. Determine if buying a business is cheaper than starting up a similar business from scratch. When you look at a business for sale in a similar business to what you want to start up, determine where it is in the life cycle of the business, is the business for sale in the start up phase, growth stage, mature stage or final stages before death, sales declining and the business deteriorating and the owner is struggling.
How much money will it cost to buy that business for sale, will it require additional capital to continue to operate, will it be better to buy this business and put more money into it or will it be better to start from scratch if the business is declining? You will not have any skeletons in the closet and you can look to a positive future rather than looking over your shoulder to determine what else could go wrong.
There is no right and wrong when you buy a business or start a business. Only you can determine which option is better for you. Remember, you are buying the business not your friends and family. If they like it and you don’t, it still does not work for you. You are the one who will eat and breath this business, you have to be the one who will want to work there and are excited about coming to work every day.