What is ETA?
Your guide to the benefits
Have you heard of entrepreneurship through acquisition but are unsure of what this means? Read through here to answer this and to learn why this is a great choice.
Entrepreneurship through acquisition
Many Americans are growing tired of working in corporate America. Here, they are spinning their wheels on a fixed salary and far too many hours. To make matters worse, their wages are barely increasing on a yearly basis.
Fed up, millions are responding to an entrepreneurial spirit and starting their own business. In fact, 27 million Americans are either starting or running a new business.
Pursuing an entrepreneurial opportunity is a wise decision. The profitability rate recently surged more than 25% in a single year.
Read on to learn about entrepreneurship through acquisition. Explore the benefits of acquiring an existing business over starting a new one.
What Are the Challenges of Starting a New Business?
Many entrepreneurs decide to start their own businesses. While some find success, this path is likely to see significant challenges.
The most obvious challenge to overcome is that you are starting from scratch. You do not enjoy the luxury of an existing brand.
There are no loyal customers or equipment to leverage off of. Also, policies and processes have yet to be developed.
You do not have existing employees or subject matter experts. Instead, an employee training program needs to be developed and provided to all new workers. There may be significant barriers to entry in the marketplace including established competitors.
What Are the Benefits of Entrepreneurship Through Acquisition?
Entrepreneurship through acquisition occurs when buyer(s) purchase an existing business. This includes pursuing franchising opportunities.
In this scenario, an entrepreneur finds a business for sale and pays a price to acquire it. This may come in the form of a lifelong small business owner who is retiring and looking to sell.
There are many benefits to this approach because the transaction may include many different items. For example, you may be acquiring the company’s machinery and supplies. Perhaps the company has popular social media accounts that you will take control of on day one.
Perhaps the greatest benefit is that an existing business has an established revenue stream. You do not have to stress over generating profit as it will be coming in from the start.
How Do Entrepreneurs Find an Existing Business?
Once you decide to forgo starting a new business from scratch, it is time to find an existing business. However, this is easier said than done. Businesses do not typically put up a for-sale sign on the storefront.
The good news is that there are online resources to pair entrepreneurs with business owners looking to sell. There are algorithms that help match your passions with existing businesses and franchise opportunities. Once financing is secured, you can get a business appraised and make an offer.
Glance through featured businesses for sale listed recently on BizNexus Marketplace
Wrapping It Up
The American Dream is alive and well. Now is the time to seize your opportunity and become your own boss.
Instead of working uphill with a brand new business, you should consider purchasing an existing business. This way, you can inherit an established brand and revenue stream.
If you want to learn more about entrepreneurship through acquisition, you can start your search for the next business opportunity by signing up to BizNexus.
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