Watch on YouTube: How Entrepreneurs Decrease Risk Buying A Struggling Business
When it comes to business, there’s a lot of risks involved in the buying process.
Not only are you risking your own money, but you’re also risking the time and effort you’ve put into the venture.
However, by choosing to buy a struggling business, entrepreneurs can actually decrease that risk significantly.
In this article, we’ll explore some of the reasons why buying a business that’s already in trouble can be a smart move for ambitious entrepreneurs.
Why Buying A Struggling Business Is A Smart Move
When entrepreneurs are looking to buy a business, they want to reduce the amount of risk as much as possible.
Therefore, the idea of buying a struggling business rather than one that is doing well may sound riskier.
However, the cost of purchasing a successful business means that the amount of capital that an entrepreneur has to invest doesn’t always justify their returns.
Instead, buying a business that’s on its knees and then using a creative solution to tap into new markets and adapt the brand into something new, can yield far higher returns on their investment.
This video shows you how it can be a smart move for entrepreneurs to buy a struggling business and how small business owners struggling to survive can reduce risk by adapting to industry trends and expanding into new markets.
How Entrepreneurs Decrease Risk Buying A Struggling Business Video Description
Here’s how entrepreneurs decrease risk when buying a struggling business:
Every time I read an entrepreneur success story or case study, their story is something like this:
- They quit their job
- They start company
- And now they’re successful
It’s so cool. It’s fun. And it’s a huge myth.
I call this the “Entrepreneurial Deathtrap”.
Entrepreneurs go all in.
They quit everything, they put everything on the line… And sure, some make it, but most don’t.
Have you ever noticed that of the businesses that make it, most ended up being very different to their original vision?
Facebook is a great example of how to start a successful business with no money: it was built in a dorm room for college students to check out other “hot” students.
Their business model was never originally designed to be an integral part of millions of people’s daily lives and to be used by every race, nationality, age group and level of education.
Their entire growth strategy was to adapt their business ideas to fit with what the market wanted.
Because they were smart enough to innovate, they’ve become a global powerhouse that some would believe is capable of influencing the outcome of a US election.
Now more than ever, you need to be ready to adapt.
AI and robotics are going to decimate ¾ of the workforce.
Even if they’re well educated and a part of a large global institution, and if it can be imagined at all possible that AI or robotics can do someone’s job, then their future is on the line…
They have to adapt and when it comes to buying a struggling business, you adapt by studying trends and then changing your business model with strategic planning.
Similarly, if you own a successful ecommerce store or if your website is getting a lot of paid traffic, then it won’t last unless you adapt to the rise of voice search and popular voice platforms like Alexa or Google Home.
The best advice you’ll learn from any good business growth strategy case study is this: It takes creativity and imagination but also the ability to survey future business trends and the direction that society is headed.
With this knowledge, you’ll decrease risk and be in a position to create a strong ecommerce business model (or a business model for any industry).
If you’re seeking small business ideas for a business growth strategy then look around you.
Watching how other people live their lives and the directions that their professions are headed towards can help to guide you towards being able to anticipate where things will be in the next five to ten years and to then adapt.
A great example is how entrepreneurs bought a struggling business and then turned it around is a local tourist attraction that I took my kids to one afternoon during the Easter break.
The National Museum of Rural Life is a working farm, but what makes it different from any other farm is that it has a farm museum, petting zoo, a cafe, gift shop, tractor rides and is subsidised by the National Lottery, East Renfrewshire Council and Scottish government.
So while farms up and down the country are by all accounts crippled by supermarket prices and international produce, this farm is producing bumper profits – regardless of the economic climate, trade restrictions and the overall effects that it has on Scottish farms.
Why?
Because they were smart enough to see where their industry was headed, they used imagination and creativity to adapt their business model to develop and then build a risk-free business strategy.
Adapt or die.
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