Many new businesses fail within 12 months, and as many as 70% will not reach their 5th anniversary. With so many difficulties in building a new market with sufficient cash flow, it may be better to look at the business listings in San Jose CA to purchase an existing business, rather than attempting to begin your own.
Considering Location and Cash Flow
Many individuals believe that starting a business will cost far less than purchasing an existing operation. While the initial outlay may be less, the cost of building a business, marketing, and advertising during those early months or years will be extremely expensive and possibly far less than purchasing an existing business.
By discussing your requirements with your business brokers, they will show you their entire and relevant business listing in San Jose CA. This might provide you with a perfect location for your new business even if it is currently operating a different type or style of sales, products or services.
The cash flow of a new operation is usually under pressure before the premises can open for the first day of sales. Money is always going out as you set up a new business, whereas purchasing an existing business brings with it current employees, current customers, and turnover the moment the business this becomes yours.
Those established customers will provide your initial cash flow which will provide you with the finances required to continue the business.
By working closely with your business broker and investigating their business listing in San Jose CA, you may be able to determine the type and size of business that suits your financial arrangements.
As an entrepreneur, you can still change the business and its operations to suit your specific requirements, when you purchase an ongoing operation. With a new business, several months may pass before your business is even ready to open the front door.
