Registering vs Buying

One quick way to get started with your own business is to buy an existing company. By purchasing a company, you already have a trademark, some customers, and hopefully sales from the very first day. Even if you buy an existing company, you need to be as much enthusiastic and be as well prepared as if you started a business from scratch. As this may seem like a shortcut to establish your own business, at the same time buying a business is a delicate job and includes its own risks as its benefits. 


Consider the amount of your investment:

One issue with buying companies is that it requires a bigger investment. You simply have to pay because the business is already built. Consider you have to pay for the time and other form of resources that someone has consumed to build up an active company. You are paying to have direct access to the resources like an office or infrastructure, suppliers, equipment and products.

In some cases, regarding the market and industry conditions, it is more reasonable to start from scratch to build your own brand and business profile.


Be aware of what you are buying:

It is very different if you are buying the properties of a company or business like the products in the warehouse, machinery, building or etc. OR you are actually buying the ownership including the equities and all the properties of the business. If you are buying a business through its shares or equities, the duties, obligations, possible fines and so on will automatically be yours as well.



Find your favorit:

When you want to buy a business, you need to start by figuring out what you are looking for. Think about what you can do the best, what motivates you, in which sector or industry you want to enter, and how you want to develop the business in future. Once you know what you are looking for, it is easier to know where to search for it. You can look by yourself in magazine ads, websites, apps and so on or hire a business broker.

If you really know what you are looking for and have a perfect candidate, you can always contact the responsible person and make an offer.


Do your homework:

Once you have found an interesting company to buy it's time to read about it! When you contact a broker or seller for more information, it is an advantage to be ready and know about that specific business, which makes you a more credible buyer.

You will need to have a good estimation about the real existing value of the company you are going to buy. Don't stress yourself because it is a hard job to do so unless you are a professional and expert in this field. You can simply ask for help from banks, auditing companies or other professionals to evaluate the price of a business for you. Yet, don't forget to negotiate before signing a contract!

By purchasing an existing business, you will still need to prepare a business plan to analyse and estimate what are you planning to do there and how. This is specially an important document if you are going to apply as an international entrepreneur for residence permit.




Help: If you have found a business and you really want to buy it, click here for a webpage where you can find useful information about any registered business in Sweden.





(Extracted from multiple resources. Last updated on 2018-04-10)
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