The pros and cons of buying vs. starting a business

Which path to entrepreneurship is right for you?

Ben Kelly
December 31, 2024

Making six figures at a W2 job sounds great to most people.

But if you're reading this, you're probably dreaming of something bigger.

You've got two paths to building real wealth as your own boss:

Buy a business, or start one from scratch.

Each has its own pros and cons — let’s break them down.

You’ll get a way faster ROI, with a lot less risk.

Why?

Because the business is already profitable!

You’re buying something that has existing operations, cash flow, customers, and revenue.

You’ve got a complete playbook for what works.

And from day one, you’ll have a steady paycheck.

Your only job from there is to figure out how to scale and make even more money.

It’s tough to find good deals, especially in the sub-$10 million market.

And analyzing them is not easy as a beginner. You’ll need mentors to guide you through the process.

Same goes for financing the deal.

If you don’t have swimming pools of cash laying around, you’ll have to learn how to get leverage through the bank, or bring in outside investors.

The cool part about starting a business is that you have control over everything.

It’s your vision, and your rules.

And you don’t need a big loan — just a few hundred dollars (or a few thousand, depending on your industry) to test market demand.

By the time you get your first customer, you should be making a profit right off the bat.

The biggest one is:

You’re starting off with ZERO income.

And, it’s unbelievably time-consuming.

You’ve got to drum up new customers, build a reputation, and painstakingly grow your operations from nothing.

So it won’t be a passive source of income for a long while.

And not to be a downer...

Stats show that the average startup has over a 90% failure rate within 5 years.

Those are astronomically bad odds.

On the flip side, if you’re buying a business that’s been profitable for 5 years, you’ve got over a 90% chance of continued success!

Want more info on how to acquire your first business, or passively invest into a deal?

Or, if you’re a business owner looking to sell:

Tell us more about it here, and we’ll help match you up with quality prospects.

Have an excellent New Year’s Eve, and here’s to your success in 2025!

P.S.

I posted a new video showing 5 low-risk business ideas that are perfect for beginners in 2025.

All of them are simple, affordable, and can be done in your local market!

Click the link below to watch: