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Ep. 94 - Skip the Startup, Buy a Business
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Ever wondered if entrepreneurship really delivers the freedom and flexibility it promises? In this eye-opening conversation, we tackle the myth head-on and reveal why business ownership often means you're never truly "off the clock." Between cash flow projections that tank just before your family vacation and the constant connectivity of smartphones eliminating any excuse to be unreachable, the entrepreneurial reality differs dramatically from the dream.
We pivot to a strategy many aspiring business owners overlook: buying an existing business rather than starting from scratch. This approach offers remarkable advantages, particularly gaining an established customer base—something that typically takes years to build and represents the most challenging aspect of any new venture. As Eric said, "Getting new customers is like the hardest and scariest thing you can do," which explains why acquiring a business with paying customers already in place significantly reduces risk.
The episode provides a practical roadmap for business acquisition, from approaching sellers and using letters of intent to negotiating seller financing arrangements where previous owners finance part or all of the purchase. We explore the critical differences between asset and stock purchases, with straightforward explanations of the pros and cons of each. Whether you're considering entrepreneurship or looking to expand your current operations, our insider knowledge about deal structures, due diligence pitfalls, and the importance of specialized legal counsel could save you countless headaches and potentially hundreds of thousands of dollars.
Ready to skip the riskiest part of entrepreneurship? Visit bigtalkaboutsmallbusiness.com to explore our resources and submit questions for future episodes. We're here to share real-world experience, not to sell you anything.
Chapters
1. Is Entrepreneurship About Freedom? (00:00:00)
2. The Vacation Dilemma for Business Owners (00:09:07)
3. Buying vs. Starting a Business (00:17:43)
4. How to Approach Buying a Business (00:28:14)
5. Stock vs. Asset Purchase Explained (00:34:17)
6. The Critical Importance of Due Diligence (00:43:08)
101 episodes
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