Buy a business that already exists or start fresh?
If you want to become an entrepreneur, you can either start a new business or take over a business that already exists. Both these options have pros and cons which can be considered carefully. Usually when starting a new business, less money is needed than for an acquisition. A new business also brings the possibility of a new business model. At the same time, the risks of failure are higher with a new business than with an established business. In addition to that, establishing a new business on the market might take a long time.
Is buying a business a real alternative?
For a business succession, there is usually more money involved. The successor carries the responsibility for the existing employees. The successor can benefit from both the firm’s current positioning and the established clientele. From the first day on, there is a significant turnover and the employees know what they are doing. All the funding programmes for founders are also applicable for successors in Germany. There are several online platforms dedicated to finding homes for businesses looking for new owners.
Additional links and hints (in German only)
The nachfolg-o-mat (“success-o-meter”) is an online tool that gives a general overview about business succession in Germany. Each user can answer different questions and will then receive an individual analysis about their succession knowledge. In addition to that, the users can see in which areas they still need to acquire more information or knowledge and which contacts might be useful for that.
The nachfolgewiki (succession wiki) contains many articles that explain different aspects of business succession and about financing and buying a business. The following articles might be relevant to you: