In this country, millions of Business Owners got their start by buying a Business that was already operational and had an existing reputation. This is a common practice and has provided a lifestyle and income to lots of people that may have not been able to build a business from the ground up.
However, it has always been curious to me when these companies advertise. They advertise that they have been in business for many years and have provided excellent services throughout those years. They tout experience and dedication and quality even though they may have just walked through the door.
Is this ethical? Should people who buy into a pre-existing business use the accomplishments of previous owners to grow the business? What happens if and when it is proven that the NEW owners are not as efficient and concerned about their reputation, as the previous owners?
When you buy into an existing business, you should at least have a clue as to the procedures and standards that built that business to the point it was, when you took over. You should have the knowledge and desire to build your own reputation of good, quality service. Not just ride on the coattails of others. You should at some point, be able to stand on your own deeds in business.
Taking over a pre-existing business is a big responsibility. You are taking the previous owners reputation and claiming it. If you tear down the business and the reputation that came with it because of poor management or lack of experience in the field, whose reputation really gets ruined?
When buying an existing business, the new owners should really have some idea of what they are doing. If you have never manufactured anything in your life, should you buy a manufacturing business? If you were a schoolteacher or an office worker, do you know how to manufacture anything, without some kind of formal training?
I realize that people want to own something. They want a legacy of some kind of a worthwhile venture that carried their name. Buying an existing business offers many easy ways to do that. There is no start up. It is just jump in and keep it going.
Not managing it well or tearing it down, also tears down the previous owner’s efforts. People who have been dealing with the previous owners, expect the same quality work as they were getting before. If it isn’t there, they don’t understand why.
New customers also expect quality work. When you continue to advertise, using the previous owner’s time and experience, it doesn’t look good to fail. Saying you have been in business since 1975 is not accurate. However, if you so choose to state those untrue facts, you should at the very least try to uphold the long term reputation that comes with it.
We have to put more effort into preserving the reputation of business here in America. So many manufacturers and other businesses have taken their work oversees. What was once thought of as the best quality in the world has become a joke. We want the status of being a business owner, with all of its clout and and fancy titles, but we don’t want to put forth the true effort to be the reputation.
If you are considering buying a business that has been operational and successful for many years, do it with an honest heart. Preserve the reputation that was worked so hard for by the previous owners. Don’t use their efforts to put yourself in the limelight without putting forth the effort yourself.