Is Buying a Business a Good Way to Get Into Business?

Filed in archive Entrepreneurship on August 11, 2006

I was thinking about my article on the Canadian Startup Boom and as a third-generation entrepreneur that has had four businesses in the last 16 years I can honestly say that I would buy a business instead of starting one from scratch.

This is especially true if you are more security conscious person who likes a regular paycheck and have strong management skills. When you buy a business you step into a business that is already operating - like switching places with the driver of a car when it is still moving - a little scary and a bit dangerous. On my website I document 15 Reasons To Buy a Business vs. Starting From Scratch that explains the reasons and distinctions including:

• Immediate Cash Flow


• Money is not a Roadblock


• Cheaper to Buy a Business Than Start One From Scratch


• Seller Financing - Opens a Whole New World of Opportunities


• Established Customer Base


• Shorter Time To Market


• Avoid Excessive Experimentation


• Market Strength


• Experienced Employees


• Reduced Risk of Failure


• Scarcity of Young Workers


• Senior Entrepreneurs Make up 27% of the Self-Employed


• Baby Boomer Business Owners Have a Liquidity Problem

So yes, buying a business is a great option for all the reasons mentioned above. To learn more about my book, view Table of Contents - Tips and Traps When Buying a Business

Seventy Percent of Family Businesses Do Not Transition to Second Generation

Many businesses fail to plan for succession. Family owned businesses are even worse because they assume that they have a 'built in succession plan' that their kids will take it over.

Seventy per cent of businesses do not make the transition to a second generation and 90 per cent won't survive to a third, according to the Canadian Association of Family Enterprise.... The statistics are even more troubling when you consider as many as 70 per cent of business owners expect to retire over the next decade.

Family businesses might make a good target to buy - you will need lots of patience. Especially if the owner had really wanted offspring to take over the business. If he/she has not dealt with the disappointment of the second generation taking over the business you will need the patience of a saint. They will flip flop on you depending on how their day went.

If you need help my book will walk you through the entire process step by step.