Buying a Business vs Starting One
You do not have to start a business. You can buy one.
In todays times, the “entrepreneur” is the new rockstar. Building a business from scratch with hopes of making it on the front cover of Entrepreneur Magazine.
In reality, on 1 out of 10 businesses turn a profit within the first 5 years. This is not to say you cant be successful with starting a business from scratch. But what I am saying is the odds of you having to turn off the lights and lock the doors is higher.
Whats not promoted as much is the concept of buying a business. Buying a business has many benefits over starting one.
If you’re anything like me, I don’t have much time to wait in order to turn a profit.
So one way I combat that is buying a business that already produces revenue.
Like I mentioned above, you may put money up in order to start a business, and continue to pump money into it until it is finally functioning. At that point you might turn a profit and start to pay yourself.
This might take years of learning new systems and processes in order to get there.
So when I say i’m buying revenue, not only am I buying the revenue. Im buying a system that already works in order for that revenue to continue or increase.
I don’t have to spend years creating that revenue. And i’m able to pay myself day 1 instead of 4 years from then.
I mentioned earlier that 9 out of 10 business will fail. This statistic shows an extremely high rate of failure.
Im a low risk investor. So anything that i’m involved in, I like to mitigate risk as much as possible.
So buying a business thats established for at least 5 years has decreased my risk by a long shot because not only is it established and profitable, as long as I can maintain the business or even increase its efficiency, i’ll increase the businesses value.
Wave of Opportunity
Everyday for the next 19 years, 10,000 baby boomers turn 65 and retire.
Baby boomers are the United States biggest group of business owners and they are looking to retire.
And as they retire, this will present a massive wave of opportunity, and this is just the beginning of that wave.
The biggest part of the opportunity is that most of these baby boomers don’t have a successor in place which makes a great buying opportunity for you.
This opportunity wont last just like any other great thing in life.
If you are considering being an entrepreneur, think about how you can buy a business vs starting one.
Give yourself a chance to succeed with lowering your risk and paying yourself buy buying revenue.
This wave that will hit us wont last forever.