Selling and buying businesses is common, especially when the trend of just buying an existing business, instead of starting from scratch, has been growing recently. Due to this growing trend, there are even companies now that assist those who want to buy or sell a business. Price range is varying, and it may depend on the success or potential of the business to grow.

Buying a thriving business

But buying out a flourishing business is even more expensive than starting your own. And this is probably the only thing that keeps people from buying a business and makes them choose to just start from scratch. But actually, there is another way for a person to acquire a new business cheaply: buy a failing one.

Selling the business

Just imagine: you buy a failing business, you revive it, and you sell it when it has grown. It might be possible to reap 20 times more profit than how much you paid for it when you finally sell the business. And while you are improving it, you are also earning money. That is also an excellent way to see what kind of work you like and try out different ones, then sell it again if you didn’t like it. For those who are still looking for their calling, this might be the way to find it.

Of course, such a situation would mean that you’ll act as the problem solver to improve the business. You’ll have to make smart and hard decisions, like firing people or investing more money to slightly change (or completely alter) the nature of the business you bought. A failing library can be given a new life if, for example, you add an internet cafe to it. Now young people can buy their lattes and read books or surf the internet. Of course, you’ll be investing more into it, but you’ll get your money back and more should it be able to thrive on its own even when you sell it.
Of course, this is just like any other business: it’s a gamble. There are risks involved, and if you fail to make the business boom, you’ll just have wasted a lot of money. Going this route requires a lot of patience and skill. As said earlier, you’ll need to be a problem solver.

The cycle repeats

If you manage to revive the business, you may need to stick with it until you can finally find a willing buyer or if the company can supply what the customers need. Just think of the whole thing as if you’re trying to squeeze profit from the business before you have to leave.

As soon as you sell your old business, you may start another one, and the cycle repeats once more until that new business can thrive on its own and you are free to sell it. You’ll, of course, be investing lots of time and money but anyone in business expects that. And who knows, you may even change your mind as you manage an existing one.