It is a known quantity. Some of the value of an existing business comes from the fact that it is a going concern. All its parts are functioning. Even if changes are needed, it is usually easier to make changes in the operating systems than to begin from nothing. One of the most valuable parts of the operating system is the venture's current customers.
Customers are gold.
It takes a substantial amount of time and effort to build and maintain a good customer base. Another valuable part of a venture's operating system that does not appear on any balance sheet is its sales force and distributing system. A well-trained sales force combined with an effective distribution system is a most valuable asset and one well worth acquiring. Risk It is often easier to assess the risks involved in buying a going business than those inherent in developing a new venture. You can evaluate a known quantity with an existing location and current customers, staff, suppliers and reputation.