Are you considering starting a new company in 2022? Maybe it's your first company, or maybe you're a serial entrepreneur with some successful businesses under your belt and your next brilliant idea has just been born. You have everything under control, you've worked out a business plan, you're highly motivated and ready to hit the ground running. But... maybe you shouldn't. In this article, we've gathered 5 reasons why it might be better to buy a company instead of starting a new one.
5 reasons to buy a successful company instead of starting a new one
The harsh reality is that most new companies fail. According to the Bureau of Labor Statistics, about 20% of small businesses fail in the first year, 50% fail in the fifth year, and 70% fail in the tenth year.
A recent study of 101 startup founders found that these are the main reasons for the failure of new companies:
● 42% of small businesses fail because there is no market need for their services or products.
● 29% fail because they run out of money.
● 23% fail because they don't have the right team to lead the company.
There are, of course, several reasons why new companies fail. As an entrepreneur preparing to start a new company, you are facing a lot of uncertainty. But what if there was a way to mitigate this risk?
One of the goals of most entrepreneurs is to become financially free, work on their own schedule, or make an impact - or all of the above. Whatever goal is most important to you, there is a better and faster way to achieve it.
Buy an established company
In most books, seminars, trainings, and online courses you've consumed so far, you've probably only learned one thing - how to start a new company. If you want to achieve your goals faster than you ever thought possible, here are 5 reasons why you should buy an existing company instead of starting a new one.
1. Pay yourself and profit faster.
Most entrepreneurs start a company with a clear goal in mind: to make money. They want to earn good money as quickly as possible so they can use the money to take care of their family, travel more, donate more, spend more time with their children, etc. However, what most entrepreneurs don't realize when starting a new company is that they first need to invest and this for an unknown period of time.
You pay out of your own pocket for unexpected expenses, unforeseen hurdles, hiring a team, and much more. It will take several months - maybe even years - before you get a single franc back for your efforts.
Instead, buy an existing company that already exists. When you buy an existing company, you can immediately benefit from it and be on your way to the kind of financial freedom you envision. You can spend your time working on the company instead of in it, further increasing your existing profits.
2. The groundwork has already been done.
Another major advantage of buying established companies is that you don't have to worry about building a complete foundation. Just like a house, a company needs a strong foundation to survive. Standard operating procedures, policies, licenses, permits, infrastructure, and the right employees are just a few of them. Not to mention customers are already there. It takes years to build all these elements from scratch.
When you buy an existing company, you acquire
