Comments on: Buying an Existing Business vs. Starting my Own Business

By: Scott Messinger

Scott Messinger — Sat, 03 Oct 2009 12:48:37 +0000

John- thanks for reading and commenting. I like the different perspectives. I concur with your concepts. Sounds like you may be familiar with the person that is good at ideas and starting something but not so strong at managing that idea long term. Or the person that is not much of an idea person but strong at managing and growing an idea. The person that is strong on the idea and good at managing and growing the idea are a much smaller segment. regards Scott

By: John Martinka

John Martinka — Wed, 30 Sep 2009 20:57:04 +0000

Business buyers are not “creators.” They don’t have that next great idea. What they do have is management and leadership skills obtained in the corporate world. They can manage people, processes and money and want to use those skills to take the business to the next level. They also have cash and realize it’s a fair trade of their cash for immediate cash flow from the business (I am assuming they only consider mature, profitable businesses.)

By: Scott Messinger

Scott Messinger — Tue, 15 Sep 2009 14:45:57 +0000

CreditCrunchMan- Your point is well taken. Time to build on your own and time to positive cash flow should be weighed.
I am more of a startup guy. I recognize the setbacks that you can incur-and very often they are money related. Even though I like developing my own business ventures, I recognize that for some people and some situations buying an existing business and modifying to your standards may be the way to go.

By: Credit Crunch Man

Credit Crunch Man — Mon, 14 Sep 2009 15:57:11 +0000

I agree with your analysis but like to add that if you are buying an existing business you should look to what the business has that you can’t make on your own within a reasonable time. If you can’t see it, it is probably better you start your own business.