I will always looking for lucrative opportunities and businesses for sale, because I divested not because my previous businesses are bad businesses. Thanks to the recession and economic crisis, customers’ buying power is all-time low, which have a direct impact to my franchise units that are in business service and retailing.

My mistake, at that time, is starting out from scratch without proper knowledge, thinking that purchasing a franchise unit can get you right into entrepreneurship, fast. Although a franchise unit can help your starting-up process with proven business concept and ready-to-go infrastructure, all still coming back to you - the owner.

Wrong mindset, wrong timing and wrong decision - Purchasing a franchise unit that yet to start in a location is just the same as other type of business startups - moderately high risk of failure without proper experience and resources.

I do see inexperienced franchisees succeed, but it took more than simply a right decision at a right time to ace in franchising. I can’t simply throw hundreds of thousands of dollar for trial-and-error. Not anymore

My recommendation: Buy an existing business

Learning from my past experience, I only have one recommendation: Unless you are a startup addict or an experienced serial entrepreneur yourself, I suggest you to look for businesses for sale by owner.

Here are some advantages in buying an existing business:

• Like what is mentioned in this article, buying an existing business save your invaluable time, energy and money.
• You cut startup process, which include high risk of failure and a period of negative cash flow.
• You have a proven, profitable, business that is well-fitted and well-accepted by the community it resides in - this is very important!

Just like everything in life, for every good thing in life, there will also be a bad thing related to it. There are some disadvantages, too, in buying an existing business:

• You have to be able to blend into the culture (or mix yours with the existing) formed in the business - Yes, you could change the culture, but this is resource-intensive and might damage the business’ overall performance.
• There are chances where previously unsatisfied customers are keep attacking your business, even though there is a change in management.
• The business reputation and hidden liabilities are following you, the new owner - Just make sure you settle every detail with the previous owner before acquiring the business.