Why entrepreneurship through acquisition (ETA) may be the right path for you
Have you ever considered entrepreneurship but don’t know where to start? Or maybe you have a business idea but lack the experience to execute it successfully? Entrepreneurship through acquisition (ETA) could be the solution you need.
What is entrepreneurship through acquisition?
ETA involves buying an existing business instead of starting a new one. It is a less risky path to entrepreneurship as you are taking over an established business with an existing customer base, revenue stream, and brand recognition.
Why consider ETA?
1. Lower Risk – Starting a new business comes with inherent risks as you are essentially starting from scratch. ETA on the other hand is a less risky path to entrepreneurship. You are taking over an established business with an existing customer base, revenue stream, and brand recognition.
2. Established Systems – An already established business has existing systems that are already in place. These include management, accounting, and supplier relationships. These systems save you valuable time and resources compared to starting from scratch.
3. Existing Cash Flow – ETA means buying a business that already has a cash flow. This means you can start earning money from day one, as opposed to waiting for months or years for your business to become profitable.
How to acquire a business
There are two main ways to acquire a business:
1. Search for businesses for sale – Websites such as BizBuySell and Quiet Light Brokerage are great places to start your search. You can also network with business owners, brokers, and investors in the industry you are interested in.
2. Approach business owners directly – You can identify potential businesses by researching industries and geographic locations. Then, reach out to business owners directly to gauge their willingness to sell.
ETA success story
One notable ETA success story is that of Mark Ein. Mark purchased a small, struggling communications company in Washington, D.C. in 1999. He leveraged the company’s strengths and grew it into a multi-million dollar business. In 2006, he sold the company for a profit.
Conclusion
ETA can be a great path to entrepreneurship for those who want to reduce risk, have access to existing systems, and start earning income from day one. With careful research and analysis, you can find the right business to purchase, just like Mark Ein did. So, if you have always dreamt of running your own business, ETA may be the solution you’ve been looking for.
(Note: Do you have knowledge or insights to share? Unlock new opportunities and expand your reach by joining our authors team. Click Registration to join us and share your expertise with our readers.)