Should I buy an existing linen service or start one?

A linen service needs a plant, trucks, a stock of linen and customers willing to rely on you every week. Starting one means assembling all four at once, while customers wait to see whether you will last. Buying one means paying for what is already assembled. Neither path is better for everyone, so look at what each asks of you.

Accounts and routes

The strongest argument for buying is customers already served on set routes. A new company must win each hotel, restaurant or clinic, perhaps from a supplier they have used for years. That takes time. Ask whether an existing company’s customers would stay after a sale, since an account that leaves removes part of what you paid for.

Plant and linen stock

Existing plants come with equipment and linen that you can inspect, but they also come with wear and repair costs. A start-up can buy new equipment sized to its plan, though it must fund the linen before it earns from it. Compare the age of the plant you would inherit with the cost of building your own. See how to assess equipment condition.

Your own strengths

Ask what you do best. If you know sales and can wait, a start-up may suit you. If you know operations and want revenue sooner, a purchase may fit better. Check how much cash you need to buy a business and talk to a lender about what each path would require. Deavo does not tell you which to choose.