I often participate in open forums like BizCHATTER, Reddit and Quora. Recently, I asked this question and the response was very insightful:
Question: Would you start a business or buy a business?
Answer by Adam: Nunzio, we have done both (starting a business from scratch and also buying struggling companies and overhauling them) several times.Great question!We’ve learned that the principles of starting a new business and taking over an existing business are very similar.It seems to always boil down to these three things:
Understanding that whether you start your own business or buy an existing business, you are embarking on an entrepreneurial, emotional roller coaster journey. There are going to be days in both scenarios that you feel like throwing in the towel and giving up. The perseverance and problem-solving mindset that you incorporate in your day-to-day work ethic will help you get through the tough days.
Understanding and connecting with who your customers are
This is vital to the success of any business, anywhere in the world. You need to be able to understand who your customers are and once you understand that, you will quickly learn what they want. You can do this by ensuring that you are a great listener and surveying your customers with various questionnaires or what is called a survey funnel. This is also the key to quality customer service. Get to know your customers in order to really learn what they want and give them more of that! That’s where the strategic marketing comes into play as well.
Organization (proper legal set up and proper accounting/bookkeeping set up from the start)
It’s important to always ensure that you are eliminating any legal or accounting headaches from the start. Do all you can do to ensure that you have hired the right professionals to assist you.
Thanks Adam for this answer! It solidifies that entrepreneurship is not only about starting something from scratch but also about growing an existing business and turning it into something better. As long as we work hard, understand who our customers are, and prioritize preparation and organization, success is surely to follow.
*This answer was provided by Adam Toren.