4 ms·
Think the same reason you buy any working business. The previous owner has managed to solve a great number of non-obvious operational problems. To name a few th
by avianlyric 4y ago
Think the same reason you buy any working business. The previous owner has managed to solve a great number of non-obvious operational problems. To name a few that come to mind:
* Established supply chain
- Working agreements with suppliers (no need to find and negotiate suppliers)
- Working logistics. Scheduling of supplies is sorted, you have reliable delivery slots with all supplies
* Employees. No need to find and train labour.
* Working pay roll, accounting, taxes. No need to create that infrastructure from scratch.
* Know good business model, with auditable accounts. You substantially de-risk the investment, because you have meaningful historical data to estimate future performance from.
* Physical infrastructure already setup. No need to find a building, buy equipment (shelves, tills etc) and setup equipment.
* Business generates revenue for new owner immediately after purchase. No time needed to solve all of the above problems, instead time can be used to grow or stabilise business.
- adammarples 4y agoOwning the only grocery store in town doesn't sound like a risky business model compared to the existing and apparently de-risked "only grocery store in town" business model you'd be paying for.
- chordalkeyboard 4y agoyou'd still have to set up the grocery store instead of begin to make money immediately
- jrochkind1 4y agoI normally think of the existing customer base and "brand" as the main asset, which isn't much of an asset here. But I don't have experience managing retail business, and what you say makes sense, thanks!