It makes a great deal of sense to let someone else take the risk and high cost of starting a business from scratch. It's true your initial investment in a start up can be substantially less than an established and proven business. However, more often than not, a new business has to have additional infusions of cash for several months or years before any income is realized, while an established business will give you an income from the first day you take over.

According to government surveys, over 80% of new business fail in the first three years. The reasons for failure are many, including but not limited to poor location, wrong product line, under capitalized, por management skills, or simply too much for the owner to handle.

On the flip side of this, most established businesses continue to be successful because they have a proven location, the right product line, positive cash flow, and good management skills and success that are passed on, through training during the transition period of the business, to the new owner.