Buy, Don't Build

I am not the first person to write about this. In fact, there are dozens of excellent people in the SMB acquisition space that I follow and will shout out at the end of this article. But in case you haven’t been exposed to this industry, read on! Hopefully this will spark an interest in you, as it has for me.

Starting a business is risky. Launching a brand new type of product or service, statistically, results in failure more often than not. Even starting a tried and true service business is not guaranteed to work. Bottom line up front, no investment of time or money in a business is without risk.

However, buying an existing business has a far higher probability of success, i.e. high returns, than just about any other asset class I’ve studied. I’m talking about buying businesses with at least a few years of operation, established customer base, tried and true standard operating procedures, and efficient management. These are gems. And the beautiful thing is that there are millions of these available for sale right now!

The next huge advantage is the types of financing available in the business buying world. You can get massive leverage with little to no money down and backed up by the Small Business Administration. You can get seller financing where you make payments to the seller over time. You can structure all types of deals with partners, sellers, employees, and lenders to set up situations where everyone wins.

On a macro scale, there is a huge number of Baby Boomers set to retire in the coming years. Many of the business owners among them do not know they can sell their business. Unfortunately, many wonderful businesses will be shut down. But the rest are opportunity for the new generation.

This is the most exciting time ever to be in this game.

Interesting humans talking about SMB acquisition:

https://twitter.com/ClintFiore

https://twitter.com/Codie_Sanchez

https://twitter.com/SievaKozinsky

https://twitter.com/AlexHormozi

https://twitter.com/sweatystartup

https://twitter.com/walkerdeibel

And many more!