Operating costs and future sales may be difficult to predict because there is no history to rely on since the business is not established. The single biggest disadvantage of starting a new business is the unknown. There are many rules, regulations, statutes and taxes that the owner may not be aware of at the time the business is opened. A new business owner may have a product that is not very marketable, or not marketable in the area they picked. There are a lot of risks in establishing a new business, so it is important that thorough research is done before the business is opened.

Buying an Existing Business

There are many benefits to buying an existing business. Start-up time and costs would be less; you may be able to work out an agreement with the seller to purchase the existing equipment and stock. The existing employees may also come...
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