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Want to be your own boss? Do this first [CNBC]

There generally are two ways to becoming a small business owner:

You could buy an existing company, with its established customer base, stable of trained employees and proven cash flow.

Or you could start a company from scratch and bootstrap it – hopefully to success.

Starting from scratch may be best for the entrepreneur with a groundbreaking idea. On the other hand, those who aspire to make their own hours or seek more immediate cash flow may be better off taking over an established business….

“Buying a successful, existing business with proven cash flow and revenue history is almost always going to have a higher chance of success than starting from scratch,” said Bob House, general manager of BizBuySell.com and BizQuest.com, which together feature 76,000 business listings for sale.

Financing a business acquisition can be easier because of the company’s documented financial history and assets, said Jay DesMarteau, head of small business banking for TD Bank, though a lender would also evaluate the buyer’s qualifications to operate the business and whether the company’s success is dependent on the seller’s involvement. Business buyers might also take advantage of seller-held financing, which may have more flexible terms.

Curated from Want to be your own boss? Do this first [CNBC]

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Gresham Harkless Jr.

Gresham Harkless is a Media Consultant for Blue 16 Media and the Blogger-in-Chief for CEO Blog Nation. CEO Blog Nation is a community of blogs for entrepreneurs and business owners. Started in much the same way as most small businesses, CEO Blog Nation captures the essence of entrepreneurship by allowing entrepreneurs and business owners to have a voice. CEO Blog Nation provides news, information, events and even startup business tips for entrepreneurs, startups and business owners to succeed.

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