Below are some of the things that can highly influence your decision to make that purchase.

Key Considerations

  • Customers – If a company already has a strong customer base, you are most likely shelling out money for goodwill. Businesses with such, will certainly produce immediate earnings.
  • Operations –Purchasing an existing business will save you time and effort since you don’t have to build processes and systems from scratch. You already are engaged with suppliers so there’s no need to look for a pool of them to provide you with the necessary tools for the operations.
  • Product – The array of products that the business is offering and the profit that they bring in (or not) will serve as good indicators of what still needs to be improved in order to generate more sales and free up costs to be spent for marketing.
  • Employees – Members of the business work force are in the right position to give insights about the business and the industry where the company belongs.
  • Financing – Good historical sales data and existing cash flow are what most financial institutions look for when financing a purchase. A set business plan and neat, accurate records are good tools to help you make decisions to generate short- and long-term profits.


  • Proven concept – there’s less risk in buying an existing business because the structure and the operation processes are already proven to produce positive results. A business with a track record is much easier to finance compared to a start-up company.
  • Brand – The effects of the marketing efforts done by the previous owner on the brand will also be transferred to you once you make the purchase. Despite being a local business in a certain area, say Ontario, your business will still make waves if your brand is already doing the talking for you. Having a good brand image can certainly attract a lot of customers and potential buyers alike.
  • Relationships – You will be acquiring the customer and supplier base along with the business itself once you make that big decision.
  • Focus – The basics of the business were already established by the previous owner so you can already put your focus in working on the potential growth of the business. You don’t need to spend so much time and effort to determine where to situate your cupcake business in Ontario area, to acquire the needed tools, and to come up with effective operational processes because they are already existing and included in the acquisition.
  • People – One of the considered most valuable asset that is inclusive in a business acquisition is the work force. The previous owner certainly took time and invested on the trainings of the employees to deliver good results for the business. With you taking over, you are confident enough that these people will be able to help you implement the strategies that you want to achieve growth.
  • Cash flow – Existing businesses are expected to produce cash flow, enough to cover the expenses, your personal salary, and to still take the business performance to a higher level.
  • Risk – They say that acquiring an existing business is less unpredictable but risk is considered to be relative. Most financial institutions allow funding of this kind of transaction if it sees that the average cash flow can cover the amount that was paid. But that is much safer to assume as compared to shelling out money for a business with no indication of success or growth.

To learn more about buying existing businesses, visit the website Business for Sale in Ontario.