Most aspiring entrepreneurs focus on coming up with the next great idea.
Aspiring entrepreneurs put together a business plan, line up financing, get their business off the ground and if they’re lucky, survive to see their second or third anniversary.
Buying an existing business is a far less risky approach. When one buys an existing business, especially an established business with a solid history of profitability and a loyal customer base, one eliminates virtually all of the risk associated with starting a new venture.
In addition, obtaining financing for the purchase of an established business is generally much easier and cheaper than trying to finance a new venture.
Buying the right business starts with an honest assessment of your interests as well as your personal strengths and weaknesses.
Look to buy a business that will allow you to leverage your skills. Buy a business which gives you a natural pathway to combine your vision and creativity. Buy a business that will give you a shot at the American Dream.
Take your brilliant idea for a new business and combine it with an existing business platform. This way you will reduce your risk, you will leverage the business’ current cash flow to launch your new idea, and you will give yourself the opportunity to see your vision become a reality.
Here are some practical questions to ask of yourself before you decide what type of business to buy:
Are you a natural manager of people? Or, are you more comfortable working mostly on your own, without the sometimes complex pressures of managing employees? What is the ideal size of a business for you in terms of revenues, number of customers and employees? What geographic location would be most suitable for you? Perhaps it will be in beautiful Colorado.
Once you have a rough idea of the type or types of business that would be suitable for you, contact John Hornblower, Managing Broker at VR Business Brokers’ Aspen office at (970) 429-8220. John and his team may already have the right business for sale.
Here’s a link to a Harvard Business Review interview that details why one should consider buying a business instead of starting a new venture. The Harvard Business Review interview also details how to go about finding the right business and how to grow it once it’s yours.