Seek first to buy

Not everybody is going to be a Steve Jobs or a Steve Wozniak and change the world by tinkering with a new idea in their garage.

But when you read books and articles about entrepreneurship the authors usually advise you to follow your passion, to solve some unknown problem, or to create something never thought about before.

I've always been passionate about feeding my family and improving my circumstances.

Owning a small business has been my path in achieving these ends. However I haven't changed the world, and income taxes and accounting are known problems that have been around for thousands of years. A business doesn’t have to be exciting and cutting edge to make money. In my experience, the mundane has made many a business owner a lot of money. Plus it's easy to be passionate about any business that makes you good money.

If you come to that point in your life where you are ready to improve your circumstances through business ownership, congratulations! It's a noble path. However, consider this.
There are basically two paths to business ownership: you can start a business from the ground up or you can buy an existing business.

When I began my business I started from scratch never considering I would have an advantage by buying a business. If I were to do it again I would look to see if I could find an existing business to buy. Here is why: When you buy a successful business you have instant cash flow. By contrast, when you start a new business you begin with money from your savings or from the bank and that money has to last until you generate enough profitable sales to pay your bills and to pay you.

Many businesses began with a great idea or concept that would have worked but they burned through their startup money before they became profitable.

Successful businesses are successful because they have great employees, employees who are trained, experienced, and inherently want to do a great job.

When you begin a new business from the ground up you will likely have to hunt hard to find this type of employee. Why? This type of employee already has a job. Why would they want to leave their existing job to risk working for a startup company? A new business may have to hire and fire many a person and invest heavily in their training before they attach that key employee to their business. When you buy an existing business experienced and trained employees may be included.

It's common knowledge that many if not most startup businesses will fail in the first couple of years. When you buy an existing business with a successful history, you generally have better odds of staying in business. The previous owners will have eliminated much of the risk of failure by proving the product or service is needed in the market by creating a sufficient customer base.

Many times when the founding owners sell their business, new owners bring renewed energy and a new viewpoint that spurs additional growth and profitability.

If it's your time in life to work for yourself and you’re ready to own a business, don't overlook the option of buying an existing business. You might have to practice patience to find the right business for you, but, if bought right, business ownership may be your path to improving life.