Starting a business from scratch? Well, you should first ask yourself if you’re going to build or buy a business. If you haven’t thought of this option yet, read on further to learn more and why you should seriously consider buying a business before entering the world of entrepreneurship.
But first, I’m going to assume that you are fully decided on having a business and that you are 100% on boarded for its advantages.
There are a lot of blogs out there which can provide you a full list of things to consider before starting a business – from capital, time, your passion, experience and so much more.
I’m just going to cover one topic, but one that is not widely covered or at least one that I have not encountered often myself. Before you finally decide on starting a business you have to consider this concept in your decision – are you going to build or buy?
If you are an employee like me, having the inherent time constraint will make it difficult for you to start something. The daily 8 to 5 grind will easily devour your time.
On the other side, if you have the time to spare to focus on your future business it might be difficult to start from scratch due to possible shortcomings in experience or entrepreneurial wisdom. Either way, it’s a challenge to build from zero.
Believe me, I’ve experienced starting one from nothing and the struggle is more than you can ever imagine. Had I known the whole build or buy a business thing, I would have chosen to buy than build it all from the ground up.
The good news is, starting a business from nothing is not always and certainly not the only option if you want to be an entrepreneur.
In fact, buying a business instead of making one is regarded by many established and famous businessmen to be a better option.
Note: If you want to look for businesses for sale, you may click here.
Building a business of your own is riskier compared to buying an already flourishing business. Unless of course you are a seasoned entrepreneur who has been there and done that.
You need to allot time and effort in building a business. You need time to wait until your newly started business starts to turn in some profit.
Most of the time, you need to sweat and slug it out in advertising and marketing just to gain enough customers. This process can last for months, even years before the effort pays up.
And what if the business you started didn’t live up to your expectations? What if it performs poorly and you aren’t managing to break even month-after-month of operations?
And then out of false hope, you invested more money to try to breath some life to it only to find out there’s really no point in continuing its operation at all?
Sure, it will be a great learning process for you as an aspiring entrepreneur, but it will certainly come at a great cost. And who knows what could happen next?
I am in no way saying that it’s not possible, but it’s challenging to find the perfect balance between having no experience and being successful in entrepreneurship on your first try.
For these reasons, I wrote this article to share the alternative approach to starting a business, which is exactly what I did in 2015. Life is about intelligently managing risks and positioning yourself better to increase your chance of success.
I took this shortcut route when I first bought a business in October 2015. That time I was in my early 20’s and in no way an expert in business. The process of acquiring it from finding it, performing due diligence and agreeing on the price is a breathtaking experience.
I didn’t need to be an expert to tell if the business has some promise of delivering good returns. You just have to be sensible and do your research to evaluate the business properly.
You have to be certain and thorough in your evaluation that what you are buying is not a crappy business. In other words, you need to learn how to tell the value of a business and how much you should actually pay.
Having the confidence to evaluate and conclude that you’re buying a good business takes guts and to some extent luck.
Even if buying a business requires a different set of skills, it is still in my opinion easier to do and the most time vs. money efficient method to enter the world of entrepreneurship.
Doing it right is rewarding and in my case, I had the full amount I paid for the business I bought in just 10 months. This includes the amount of money I spent to improve and renovate the business.
Just to set some expectations though, it will take some effort to make a broke business profitable and bring it to the point of delivering its true potential. If you do it right, buying a business could be a better and safer alternative compared to starting one from zero.
The next time you try to think of starting a business from scratch, consider that you can buy an existing business instead. It will save you time, effort, tons of headache and your hard-earned money spent on trial and error.
So, are you going to build or buy a business?