Starting a business vs purchasing a existing one

Question 1

Benefits and Costs of ‘Starting from Scratch’

Answer 1

PRO - Owner has freedom to set up business as he/she wishes.

CON - If start up period Is slow then revenue and profits made will be harder to generate and take longer.

Question 2

Benefits and Costs of Purchasing an Existing Business

Answer 2

PRO - Good business history increases likelihood of success

When purchasing an existing business, the equipment, employees and customer base is included in the purchase.

CON - Bad reputation of business can play as disadvantage

Workers may resist to any changes of how the business operates.