Staring a business or buying a business?? 1

[AG62]

I wonder if buying a business is better than crating a new one from scretch.
When you buy a business do you get the costumers aswell?
I am thinking of buying an engineering business of CAD/CAM services( 3D product design, mold design andcnc programing), and I do not know if I can start it by myself or buy it.
I need to know the opinion of anyone that has experience in this insue.

 

[nbucska]

It is hard to start. You buy the customers, good will,
reputation etc. -- if the price is right, you can't loose.

<nbucska@pcperipherals DOT com> subj: eng-tips

 

[aspearin1]

On the same front, you also buy qualified employees.... assuming that the downfall of the business is not due to poor engingering service quality, and due more to shoddy ownership, management, or business sense.

ChemE, M.E. EIT
"The only constant in life is change." -Bruce Lee

 

[nbucska]

To expand, starting is (&*%%#@@@*&^% hard -- everything
conspired against the small business. By buying you
save yourself some of the pains...

<nbucska@pcperipherals DOT com> subj: eng-tips

 

[bvi]

Well, by buying an existing business, you also buy the consequences of any errors or ommissions they made in the past, unless you structure it as an asset purchase agreement, where you are purchasing their assets, which can include the name, but not the business. You also of course buy the good will, or bad will, whichever the case it is. Getting the right business at the right price with the right staff and existing customer base is of course worthwhile, but you need to do your homework to make sure all these are "rights" and not "wrongs."