Final answer:
The positives of buying an existing business include easy start-up, immediate cash flow, and a proven track record. Negatives include financial risks, legacy issues, and limited creative control.
Step-by-step explanation:
When buying an existing business, there are both positives and negatives to consider.
Positives:
- Easy to start up: Buying an existing business saves time and effort in setting up a new business from scratch.
- Immediate cash flow: An existing business often has an established customer base and generates revenue from day one.
- Proven track record: The business already has a history of performance, which can give potential buyers more confidence.
Negatives:
- Financial risks: There may be hidden liabilities or debts associated with the business that the buyer may become responsible for.
- Legacy issues: Existing customer relationships, supplier contracts, and employee dynamics may need to be navigated and potentially altered.
- Limited creative control: Buying an existing business means inheriting its processes, systems, and brand identity, which may limit a buyer's ability to introduce radical changes.