This question has two aspects to consider. Firstly should people be encouraged to start their business or buy an existing one? In my opinion, for individuals buying an established business is a better idea. Let me explain why.
Imagine this scenario; You have the desire to fly away. You arrive at the airport. Approach the gate where the flight attendants greet you. Now picture them saying, "Sir you want to fly to Hawaii? Fantastic! Just take a look at all those parts, on the runway. The engine, wings, everything. Simply assemble them together. Then you can fly."That's much what it feels like to start a business without any knowledge. There's uncertainty, about whether it will succeed, where you're headed and if you'll reach your goals. It's like trying to fly without knowing how. You have to assemble everything. A team, a system. And fuel it up with determination. You hope that everything works out smoothly and there are no setbacks, along the way. Starting a business can be quite an adventure! On the hand buying into an existing business is a different story altogether.
Imagine this scenario; Picture yourself sitting in the co pilot seat of a plane, alongside an experienced business owner who acts as the pilot. You're there to observe and learn how the business operates. The plane has been flying smoothly for several years, so the chances of it crashing are significantly low. You can see that it's already heading in the right direction. As you gradually take on more responsibility, the owner guides you through every step. Eventually, when you complete the transaction and officially take over the business, you'll be the one flying the plane. In such a situation, your chances of success are much higher compared to starting a business from scratch. I won't delve into specific strategies on how to buy a business with minimal capital or when starting out; I'm simply highlighting this scenario to contrast buying a business versus starting your own.
I believe that many individuals tend to underestimate the true effort required to initiate a business from scratch, beginning with just an idea and then encompassing execution, marketing, sales, systems, teamwork, personnel management and raising capital. These aspects often go unnoticed by people and they may not possess the necessary business skills to handle all of these components effectively. Often, they may only excel in one particular area, which poses a significant challenge. So the problem doesn't lie with the business itself. Rather, with the individual running the business whether its a man or a woman.
The second part of your query is whether I recommend investing in real estate. Personally, I have invested in real estate because it aligns with my preferences. However, it's important to note that you should invest in things that match your own interests and goals, rather than basing decisions solely on my choices. Your question suggests that you may not have thoroughly researched or conducted due diligence on this matter. It's crucial to consider your own level of knowledge and sophistication as an investor before making any investment decisions. There is no one size fits all perfect investment; it varies depending on individual circumstances. What might be a perfect investment for me may not necessarily be the same for you.
You know there's something I want to ask you. Have you ever noticed that some folks make a fortune in the stock market? It's true. On the other side there are also those who lose a large amount of money in stocks. The same goes for real estate. There are success stories and tales of loss. Even the oil and gas industry has its winners and losers. So it all boils down to one factor which is how informed and knowledgeable an investor's about their chosen investment opportunity.
You see there's no thing as risky investments; it's the investor who carries the risk. It's akin to driving a car. There is a level of risk involved. If you drive recklessly without proper training blindfolded while holding a knife in front of you going at 100 miles per hour on a busy highway, well thats just plain foolish and dangerous. Enough many people approach investing with a lack of caution.
Nowadays everyone seems to be jumping on the cryptocurrency bandwagon, with Bitcoin being all the rage. People are raving about it everywhere I turn! "I don't want to miss out " they say. "I must get involved with this Bitcoin thing."When you see everyone, on media talking about it and getting involved that's when you should consider stepping out. That's when its time to make a decision. So do you really understand how all of that works? Most people don't. They get caught up in the hype. Believe what the media tells them and then invest without much thought. That's not what a smart and knowledgeable investor does. We invest in what we understand, stick to our areas of expertise and stay focused, without getting distracted.
It's not about investing or starting a business; those questions suggest that you're unsure about your goals and lack a foundation. When you have a foundation these types of questions won't arise because you'll already know if you're cut out for business or not. If you choose to invest it means you have criteria and know the type of investments that align with your principles, a set of guidelines successful investors, like Warren Buffet adhere to consistently to achieve returns.
So that's basically the response I have for whether to start or buy a business question. It might be a bit lengthy. I hope it addresses what you were asking.
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