Take the Leap: 5 Signs that Entrepreneurship Through Acquisition (ETA) is Right For You
Acquisition is the shortcut to wealth for entrepreneurs. Instead of starting from scratch with a brand new business, you purchase an existing business and build from there. This strategy bypasses the risks of a new business and allows you to go straight to the growth (read: money-making) phase.
ETA offers the flexibility that comes with being your own boss and the exciting challenge of guiding an existing business toward greater success. When it’s done right, ETA has the potential to secure your family’s financial future.
Key Takeaways
ETA offers a stable foundation for building wealth because it mitigates some of the risks associated with starting a new business.
Previous business experience in optimizing processes and identifying operational inefficiencies can be a valuable asset in navigating the complexities of acquiring and managing an existing business.
ETA demands adaptability and learning agility as entrepreneurs step into existing organizational cultures, understand industry nuances, and navigate the challenges of the businesses they acquire.
You’re Looking to Build Wealth
This is why we’re all in the ETA game. We are looking to build wealth and create the lives we want. Business acquisition is an investment. As an acquisition entrepreneur, you’re not looking to buy any old business. You’re looking for an opportunity that you know you can grow. You put in your starting capital, time, and great ideas. The return on investment for a successful acquisition is increasing wealth and expanding options.
Many acquisition entrepreneurs even end up using the wealth they’ve built from one acquisition to go on to buy other companies.
Check out some ETA success stories here for inspiration.
2. You Want To Do It the Smart Way
Starting a business from the ground up involves a considerable amount of risk, from market validation to building a customer base. ETA, on the other hand, allows you to mitigate some of these risks by acquiring a business with an existing customer base, an effective team, proven revenue streams, and established operational processes. This provides a stable foundation for growth.
ETA as a strategy toward wealth carries its own risks, of course. You may end up buying a business that you did not truly understand. Your growth strategies may not work as planned. The industry might take an unexpected turn after your deal closes. However, these possibilities can be mitigated with a Quality of Earnings, and the risks do not amount to the 50% of small businesses that fail before reaching a fifth year.
3. You’re Sick of Making Money For Other People (And Want to Be Your Own Boss)
Are you sick of working a 9-5 making money for someone else? When you’re an acquisition entrepreneur, you’re your own boss. Whether you hire a general manager or lead the business yourself, you are calling the shots on how your money is spent and earned.
ETA is a great option for those with a solid background in management. If you possess experience in strategic planning, operations, and leadership, you will leverage your skills to enhance and grow the business that you buy. Lean on your previous experiences and network to help you through every part of the process from negotiating the purchase to making your first moves as the new owner.
4. You’re Agile and Ready to Learn
ETA demands a high level of adaptability and learning agility. Acquiring a business means stepping into an existing organizational culture, understanding industry nuances, and adapting to the challenges and opportunities presented by the business you acquire.
You need to learn fast, develop creative solutions, and understand the full scope of the business that you’re running. Sometimes that means getting in there and playing roles like salesperson for the day. Other times that means hiring experts who have more experience than you. Recognize your true capabilities and get help when you need it.
5. You Have Long-Term Vision and Commitment
ETA is a long-term commitment. You will likely be running the business for years. That may mean changing up your lifestyle and relocating your family for quite some time. Successful entrepreneurs in this space are not just looking for quick wins but are focused on building sustainable businesses that can weather market fluctuations and stand the test of time.
You also need to have a vision for where you can take the company that you want to buy. If you’re not sure how you can grow the business, you won’t get a return on your investment. Look into the future and see the possibilities for the business. To make the most of your investment, know your growth strategies before you decide to buy.
ETA is a unique and compelling approach to entrepreneurship. It has the potential to build wealth and allow you to have the lifestyle you’ve always dreamed of. As with any entrepreneurial endeavor, careful consideration, due diligence, and a well-thought-out strategy are essential. If you’re looking to start your search, our pre-LOI program might be right for you.