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As solopreneurs, we have “superhero syndrome”…we want to do it all and we want a successful, thriving business. But what if there’s an easier way to get to the end of the rainbow?
Today’s episode is with Ace Chapman, who shows you how to buy a business vs. build one. We dive into the who, what, where, when and why of buying a business, versus building one on episode 307 of The Solopreneur Hour.
More About How to Buy vs. Build Your Business
Most solopreneurs start out wanting to build a business of our own. We have a unique idea, vision or product we want to bring into the world. And we go to great lengths to make that happen: we learn all we can, take action, learn from those actions, pivot if needed and take more action as necessary.
But what if you’re just really passionate about a particular industry and want to skip those initial building stages? We all know a majority of businesses fail, so can we skip the failures and move straight to the success?
You can if you buy a business, and if you know what you’re doing. One of the few men out there teaching on this subject is Ace Chapman. Ace has been buying and selling businesses since he was 19. He’s had his share of wins, losses, ups and downs. He teaches from that knowledge and he’s here today to give us the insider scoop on how to buy a business.
You’ll Also Hear:
- What’s a 2 multiple and why should you care?
- What percentage of businesses for sale are advertised?
- Ace’s first start up business was what?
- What is OPM and how should you leverage it?
- What are the two most popular types of deals right now?
- And much more.
Ace’s first entry into buying and selling a business wasn’t the most auspicious start! He bought an online business at 19, and he left college and an incredible scholarship to do so. When he tried to sell it the Internet bubble burst and the company was bought for 1/10th of what it was really worth. He didn’t get a penny of the proceeds, it all went to his investors.
Because he was no longer in school he took a job offered to him in the corporate sector. But he didn’t last long! He left after just a year because he saw the successful people in that company who were 30 years ahead of him, and he didn’t want what they had.
He knew in his heart he’d rather pound the pavement looking for deals then while away his days in a cubicle. To him Corporate America was simply akin to a slow death, and he wanted no part of that.
On today’s show he shares how he went from that initial bust to later success and financial boon. We also discuss what industries have businesses available in, how to find the deals and the components of an actual deal he recently did.
He also explains how much cash we should have to get started, and the other steps to take if we’re interested in buying businesses rather than (or in addition to) building them.
Even if you don’t think you’ll want to buy a business you should tune in to this episode! Knowing what makes a business attractive to buyers will key you in on what you need to create with your business and where to go in the long run. Tune in for all of that and more on episode 307 of The Solopreneur Hour.
QUESTION OF THE DAY: What type of business would you be interested in buying? Let us know in the comments below!
Do you enjoy this podcast? If so, could you please leave a review here. I read them, sometimes on the show, and will reach out if you leave your Twitter handle!
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Selected Links and Resources From This Episode
Learn more about Ace Chapman
Biz Buy Sell, a web site of businesses for sale
The Ace Formula, by Ace Chapman
Pitch Anything, by Oren Klaff
Sololab, a Unique Mastermind