Some business entrepreneurs have a vision of what they want to create from the earliest and most basic of concepts. For them, the journey is well worth the time and struggles, and the dream is fulfilled with a successful enterprise. However, this can be a risky way to develop a business. For many Louisiana entrepreneurs, acquiring an existing business is a better and safer way to find success.
Despite all the rigors of planning, business analysts recognize that a primary reason for the failure of startups is the lack of a sustainable and scalable market for the product or service. This could be a reflection of insufficient market research or the result of some shift in the particular business between the beginning stages of development and actually getting to market. However, this problem is far less of a factor when an existing business is acquired.
With an existing business, there is a track record to rely on in the form of the business records. Additionally, other than a proof of concept, an established business has supply chains in place, an existing customer base and business licenses in place. Essentially, it doesn’t require the buyer of the business to reinvent the wheel.
Of course, acquiring an existing business is not without risk. That’s why a consultation with an experienced business lawyer could be an essential part of the equation. Determining the proper type of entity under which the business will exist and thoroughly examining the existing business’ records and contracts will help ensure the new entrepreneur has the best possible opportunity for success.