established vs. new business

Question 1

what are the benefits of purchasing an established business

Answer 1

-instant income from existing customer
-trained staff
-proven track record makes it easy to obtain finance

Question 2

what are costs of an established business

Answer 2

could inherit a bad reputation
difficult to access value of good will

Question 3

what are benefits of starting a new business

Answer 3

-full power over decision making
-owner can determine pace of growth or change
-no good will to pay

Question 4

what are costs of starting a new business

Answer 4

-high risk of uncertainty
-may be difficult to get finance without a reputation
-takes time to develop customer base and profit