Skip the Startup Grind: More Entrepreneurs Are Buying Their Way In

Every so often, startup culture declares a new “right way” to become an entrepreneur. Raise venture capital, disrupt something, copy something that’s already working…the list goes on and you get the picture.

Now that the pendulum is swinging again, millennials are choosing where to step off instead of hanging on for the full ride. A recent Entrepreneur article says more millennials are skipping the startup grind altogether and buying existing businesses instead. The approach is called entrepreneurship through acquisition (ETA).

So rather than building from zero, they’re stepping into companies that already have customers, cash flow and a track record. Credit years of pandemic whiplash, layoffs and economic uncertainty with many would-be owners wanting to seek control without chaos.

Buying an existing business offers that balance. You get to run your own show but you also get systems and revenue that already work (or, that are at least supposed to work). Here are two tips the author wants you to keep in mind if you’re considering an ETA this year:

• The first two years are intense. Commit to the work upfront and by year three you’ll be able to start shaping a business and lifestyle that work together.

• This isn’t a get-rich play. ETAs offer a practical path to control, independence and meaningful work, not instant wealth.

And two more that I would add to the list:

• Do your homework and due diligence upfront. Don’t scrimp in this area. Make sure you understand how the business actually runs day to day, and not just how it looks on paper.

• Aim for turnkey, but don’t count on it. Even the successful companies are going to need adjustment once new ownership steps in.

Buying a business isn’t easier than starting one, but you may wind up trading early uncertainty for immediate responsibility. If you’re looking for a way in without inventing everything from scratch, ETA can offer a more grounded approach as long as you go into it with your eyes open.

Starting or buying a business this year? I lay out the fundamentals in Your First Business Blueprint and Blueprints Beat Cocktail Napkins. Preview the books on Amazon.