CEO Advisory Guru, LLC founding partner and best-selling author emphasizes the importance of creating wealth through building a business empire. Having served as CEO for private equity-backed companies and successfully buying and exiting 58 companies, the author now helps others achieve financial success by turning businesses into empires. Despite the risks, owning a business can be a rewarding venture, and there are strategies that can help beat the odds of failure.
With statistics showing a high rate of small business failure, the author suggests that buying an existing business may be a smarter option than starting from scratch. As a growing number of Baby Boomers look to retire and sell their businesses, there is a unique opportunity for new entrepreneurs to acquire established businesses with a proven track record. By conducting thorough research and due diligence, the risks associated with buying a business can be significantly reduced.
The author advises potential business owners to focus on identifying businesses that fulfill needs rather than wants, as they are more likely to succeed, especially during economic downturns. By aligning one’s skills and passions with businesses that cater to essential needs such as housing, food, and insurance, entrepreneurs can increase their chances of success. Additionally, businesses with recurrent revenue streams, such as pest control companies, can provide a stable income source and reduce the need to constantly acquire new customers.
When evaluating potential business acquisitions, the author recommends looking for companies with low capital expenditures and applying the 30/20/10 rule. This rule entails ensuring the company has at least 30% gross profit, less than 20% selling, general and administrative expenses, and generates a minimum of 10 cents on the dollar. By focusing on businesses that meet these criteria, entrepreneurs can make sound investment decisions and set themselves up for long-term success.
Buying an existing business gives entrepreneurs a head start by acquiring a company that has already overcome the challenges that cause many startups to fail. By leveraging their expertise and vision, entrepreneurs can take the acquired business to new heights and create lasting wealth for themselves and their families. By following the advice and strategies shared by the author, individuals can increase their chances of building a successful business empire and achieving true financial independence.
