For decades, the version of entrepreneurship most celebrated by American society has focused on the brilliant startup-whiz kid with a big idea and a pitch deck. It’s the story we see glorified in books, headlines, and MBA classes: the genius founder who builds something from nothing and strikes it big.
That’s all well and good—founders do make up the bulk of the billionaire class, so it makes sense that we study their stories so closely. But when most popular media focuses only on that narrative, it warps our understanding of what entrepreneurship really looks like—and who gets to pursue it.
Starting a VC-backed company might earn the headlines, but building a small business has long been one of the most reliable paths to wealth. Again, traditionally, that path in popular society has been framed around starting something yourself. Everyone has been at a dinner party where they’ve heard tales of a family member or a friend who chased some crazy idea, started a business, and hit it big.
But there’s a different route to business ownership that isn’t discussed enough—one that may seem less sexy but can often be just as lucrative, contain less risk, and simplify the path to ownership for the masses: buying an existing business.
Entrepreneurship Doesn’t Have to Start With a Blank Slate
Buying a business that’s already running can be the fastest, smartest onramp to ownership and subsequent wealth. And for a growing number of professionals who want out of the volatility or politics of the corporate world it might just be the smartest move they make.
Let’s consider two separate career paths: Becoming the chief marketing officer of a non-public company with a few hundred employees or purchasing a fast-casual food franchise.
The first path takes decades of experience, the usual workplace politics, and a tremendous amount of luck, and in the end, nothing is guaranteed. CMO roles at midsize Bay Area [California] companies might pay $350,000-$450,000, plus equity that may or may not pan out. There’s a lot of upside, of course. But it’s hardly the only route to financial success.
Now Consider the Franchise Path
With just a year of planning and some upfront capital, it’s possible to net $250,000 in profit from a single store with the potential to grow a portfolio of locations. And adding something as simple as digital payments or delivery offerings can unlock serious new revenue without overhauling the business model.
Beyond franchises, small businesses nationwide are sitting on serious value driven by steady profits and disciplined operations. For anyone considering a future as an entrepreneur, now is the time to do it. Baby boomers currently own 12 million small businesses in the U.S., and the majority will change hands this decade.
So Why Buy a Business Instead of Build One?
For one, you get a company with real customers, real cash flow, and the ability to leverage a battle-tested concept or brand. You’re walking into something that’s already working instead of trying to build from 0 to 1, which is often the most difficult stage of a business—according to the Chamber of Commerce, 18% of businesses fail in the first year.
Let’s be clear that buying an existing business is not without risk and isn’t easy. It requires capital—often a large amount upfront – and lenders expect you to have skin in the game. But it has never been easier for small business owners to attain loans or lines of credit than it is today. The financial risk of betting on yourself sometimes isn’t that different from the quiet risk of the corporate path: years of work tied to someone else’s decisions and emotionless reorganizations or layoffs that could leave you on the chopping block without a moment’s notice. As a small business owner, all the risk is yours, but it’s also yours to manage. You don’t have to sit through another round of strategic realignment to find out if you still have a job or wait on someone else.
Risk is unavoidable in any path to success. The real question is what kind of risk you want to take—one where you own the upside or one where someone holds the power to pull the rug out from under you. That choice is yours. But I’m willing to bet if more people knew just how much opportunity there is in taking a risk on themselves, they’d be willing to do so—and I’ll be cheering them on during their journey. And we at Bluevine will be here waiting for them when they do.
Eyal Lifshitz is the Co-founder and CEO of Bluevine, the largest digital banking platform for small businesses in the U.S.
Entrepreneurship Image courtesy FreePik
