When it comes to starting your own business, you have a major choice ask yourself and your prospective business partners. Do you want to start your new business from scratch, or buy an off the shelf company?
There are benefits and negatives to both. But, from our perspective, the benefits of an off the shelf company make this an option well worth pursuing. It’s important to have all the facts before making your decision, as it’s been reported that four in ten businesses die within five years, making it all the more important to set yourself up for success at the very start.
An Off The Shelf Company makes it easier to obtain Bank Loans and Credit Cards
Off the shelf companies give the impression of longevity. For example, if they were registered a few years ago, they already have that history as being established years before you bought it. An aged company will always be better standing than a newly registered business and therefore be viewed as a more trustworthy investment option to banks.
Businesses may only want to trade with older companies
There’s a reason why companies tend to make a show of their anniversaries – it gives them more credibility. To explain, a business that has been trading in its industry sector for 20 years will have more experience and therefore credibility than a similar company that’s only been trading for 6 months. If you had a choice on which one to trust, the likelihood is that you’d opt for the once that’s just ‘publicly’ celebrated it’s 20th birthday. An off the shelf company gives the same sense of longevity.
It’s more than that though. It’s often business policy that a company has to have been in business for a number of years. So why eliminate part of the market by not choosing to buy an off the shelf company?
Off the Shelf Companies build confidence in clients
For the exact same reason as before, off the shelf companies may benefit from more clients because they appear to be older, and therefore more trustworthy, than they already are. More clients equal more business, but not only that; clients that put their faith in older businesses are likely to be well-established themselves. This reduces the risk with doing business with them, making it a win-win situation.
You won’t be limited by Off the Shelf Company Names
Contrary to popular belief, you won’t be limited to names when it comes to choosing one of our off the shelf companies to buy. To answer simply, yes you can, and it will only take a couple of hours to do so. You can learn more about changing the name of an off the shelf company in our blog.
For any more questions on off the shelf companies and how they represent an excellent business decision, contact a member of our team.