buy - start - invest
Why Buy a Business?
Owning a business comes with an array of responsibilities, risks, and rewards. While there are a few ways to go about it, buying a business can be the most effective and promising way to become the owner of a successful and lasting company. Buying a company allows someone with the proper resources to hit the ground running in their dream industry and with an unrivaled sense of confidence.
When buying a company, many savvy new owners take the time to learn from their predecessors to create a seamless transition as well as give the new owner a much stronger potential for enduring growth and success. Additionally, buying a business is a great way to become your own boss and start putting some of your own ideas into practice from the get-go, many unique entrepreneurs can be held back by a lack of resources, standing, or staffing when they are not the owners of their own full-fledged businesses.
Why Not Start a Business
Starting a business comes with a myriad of unknowns. While no one can know the future, 80% of new businesses fail. Acquiring a successful company carries the guarantee of a profitable business model, an existing customer base, and an experienced team that could take a new entrepreneur years to put together.
Looking at it from another angle, some business owners are simply more interested in taking over an established foundation and seeing what they can make out of it. No matter how unique your business ideas are, there are always parts of the business development process that are tedious, dense, and difficult. Much of this can be skirted by simply buying a fully developed brand and getting started with implementing and running the pieces that interest you the most.
Investing in Other Ventures
When considering what to do with your hard-earned money, many strategic investors lean more into stock purchasing and trading than to acquiring a whole new business. However, an established and proven enterprise carries a much larger potential profit as well as presents an opportunity to build out a concept that the new owner can be both passionate about and proud of.
That being said, investing and acquiring companies aren’t mutually exclusive. As profits come in from a business, investing it both back into your company and disbursing it across the stock market can be an incredibly strategic way to continue growing your wealth with a much higher interest rate than what you can get out of a simple savings account.
Buying Bottom Line
There are a multitude of ways to start a business, grow your wealth, or get involved in the industry that you’re most interested in. But none compare to acquiring your own company and hitting the ground running with all the resources available to an established company with immediate cashflow and an experienced team. Building a business from scratch carries an unimaginable amount of risk and barriers, while simply investing your money just can’t match the potential returns of a promising acquisition. If you have the skills, expertise, and capability to find the right company for you and run it effectively, buying a business is the best possible avenue to enduring success.
The Business Buying Process
Understanding the process should be your first step when deciding what company to buy and even if you want to buy one at all. It all starts by deciding what your specific criteria should be. Some buyers look for businesses with specific revenue ranges, others look for particular business models such as White Label, Drop Ship, Inventory; and many buyers simply look for something that personally interests them.
Once you know what your priorities are, we suggest choosing an industry, revenue range, age of business, and business model to look for, the next step is to start looking at what’s out there. There are a multitude of business selling sites and each of them carry their own levels of expertise and advantages. Throughout our more than 10 years of business, we’ve refined and perfected our listings, and we have become incredibly knowledgeable in helping their buyers through the process, be it their first acquisition or simply their newest.
What Kind of Business Should You Buy
When considering what kind of company to buy, consider first what you are interested in. Many new buyers make the mistake of looking only at the bottom line, however, its important to keep in mind that you will be working on this company every day for a significant segment of your life. Choose something that won’t bore you to death.
Next, be sure to do your industry research. No matter how fascinated you may be by a niche offering, understanding the profitability and the growth potential of your target industry can make all the difference in making the crucial decision of which companies to consider buying.
Now all you have to figure out is budget. The goal is always to acquire a highly profitable company, but the more promising the company the more expensive it will be in general. Understanding what you’re willing to pay for certain revenue brackets within rapidly growing verticals will ensure that you don’t end up biting off more than you can chew.
