The perils of starting a new company are well-documented, and buying an existing small business can often offer a more attractive path to business ownership. Krista Stein's recently published article in Fast Company discusses why aspiring entrepreneurs should consider purchasing an existing business en lieu of starting a new one.
"Contrary to what many believe, there are actually two main paths toward becoming a business owner: Start your own or buy an existing one. Both take long hours and hard work. But taking over an existing company from a retiring entrepreneur means you don't have to start from scratch—and it may pay off better than bootstrapping a startup."
"Over the next 20 years, retiring business owners will sell or bequeath $10 trillion worth of assets, held in more than 12 million privately owned businesses, according to the California Association of Business Brokers. More than 70% of those businesses will likely change hands, offering major opportunities for younger entrepreneurs."
"While private equity firms have been scooping up more small businesses in recent years, prospective individual buyers may have an edge; many retirees want to sell to someone with similar values, hopes, and dreams."
Read Krista Stein's full article in Fast Company.
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