Running a business is appealing to many people. Some people may prefer to purchase an existing business rather than starting a new one and making a business plan, ordering equipment, and finding a suitable location. Let us look at the pros and cons of buying an established business, but don’t forget that either way, you’ll need to consider purchasing business insurance in Illinois to cover your financial risks.

Pros

• You do not have to look for a suitable business location, and you can hope to keep existing customers, which is a huge bonus.
• You save energy, money, time, and start-up costs when purchasing an established business.
• When buying a business, you may not experience cash flow problems that normally occur when just starting a business with no customers.
• The probability of success may be greater with an established business with a brand and existing customers than starting a new business from scratch.

Cons
• Purchasing a business with established brands and customer base is often more expensive than starting a new business.
• You may not have the necessary credit history or qualify on a loan to get a business.
• Without proper research, you may find the business you purchased does not live up to the sales and profits as represented by the seller and/or may have a tarnished reputation.

Consider purchasing business insurance in Illinois from the day you take over or start a business. A quick call to your agent is likely to help determine the type of insurance you need and how much it’s likely to cost.

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