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Ask Dave

Buy Existing Business or Start New One?

Since restaurants are very risky, Ross should consider buying into an existing restaurant, rather than put his personal assets on the line with a loan for a new business.

QUESTION: Ross says that people considering buying a franchise, specifically a restaurant franchise, should buy an existing business to start with.

ANSWER: You’re right – people thinking about buying a franchise should work for a similar business to see if that’s really what they want to get into.  Great advice!

Buying an existing restaurant is also a great idea.  You just need to make sure you’re not going into debt to do that.  With the failure rate of small businesses, especially restaurants, you should never get a small business loan that ends up putting your personal assets in jeopardy. 
Buying an existing restaurant with cash is a great plan.