Existing successful businesses have a proven track record of profits that will most likely continue long after the business sale. Now you get to apply your new ideas, expertise, and renewed energy to take the business to even higher profitability.
You’ll have established customers for immediate cash flow. No suffering through a long start-up period where you struggle to attract customers to your business. Use these customers as building blocks for future growth.Typically, you’ll be able to use a business seller’s financing of a large portion of the purchase price to maximize your buying potential.There’s no question that the success rate for new business owners that have purchased an existing business is much higher than for those who start a newly formed business. This is because an existing profitable business has already proven that it’s successful.However, the actual process of purchasing an operating business can be a challenging undertaking and you’ll want to be fully prepared. You need to gather as much information as possible which will help you to; find a suitable business for sale, value the business, arrange financing, conduct negotiations, and finally, to actually close the deal and transfer ownership.

In most cases, buying an existing business is less risky than starting from scratch. When you buy a business, you take over an operation that's already generating cash flow and profits. You have an established customer base, reputation and employees who are familiar with all aspects of the business
. And you don't have to reinvent the wheel--setting up new procedures, systems and policies--since a successful formula for running the business has already been put in place.

Buying an existing business is an excellent option that is often overlooked by entrepreneurs, but it does have advantages. You will have an established name, existing customers and an immediate revenue stream. However, searching for a business to buy can be difficult, and finding the right one to buy is tougher yet.

The process can be time consuming, costly and frustrating. Even the most skilled businessperson may find this experience challenging. To provide some “structure” to this very complex decision, the following process-oriented steps may serve as a checklist to help you go through the process.

Personal assessment and criteria
Based on what you know about yourself and why you are interested in this business, you must constantly assess if the concept and the business is right for you. Does it fit with your interests and your resources? Cash, credibility, skills and contacts: do yours match what this business will demand?

Ask for the business plan
Does the seller have a current business plan? Do they have any business plan? The business plan—or its absence—may tell you a lot about the business, its history, the owner’s view for its future, and their interest in selling.

The seller
If you should purchase the business, you are going to be dependent on the seller for information, contacts and resources. Based on what you know now, what do you think your relationship with the seller is going to be like? Can you expect that to be a positive experience? If you see signs of a “difficult” person in the initial purchase investigation stages, it may become more stressful for both parties as things progress.

The help of professionals
You may decide to approach a business broker to help you find the right business for you, but remember that the broker’s loyalty may lie with the seller. You will want to retain a Certified Public Accountant and an attorney who is knowledgeable in business acquisitions. A CPA will to help guide you through the financial analysis process, and you may benefit from legal counsel as agreements are drafted and signed. Their expertise and the emotional separation from the process can make the costs for their services your wisest investments in the entire process.