"Less sizzle, more steak."
I admire this pithy yet accurate description of entrepreneurship through acquisition (ETA) from a Northwestern Kellogg School of Management professor.
While it might not be as hyped as the startup life (the sizzle), buying an already established and solvent business and running it your way (the steak) is still entrepreneurship — it's just a different, often less risky road to get there.
ETA is gaining momentum thanks to the baby boomer generation. With more than half of U.S. businesses — 52% — owned by those age 55 or older, many are looking to sell their companies and head off into the sunset of retirement. Combine that with the lack of succession planning (e.g. no family or employees interested in taking over), and this is the right time to buy.
Our industry tends to glorify the one-in-a-million ideas that catch fire and make billions of dollars while forgetting that the backbone of a healthy economy comprises small but steady businesses. After all, small businesses generate 44% of America's gross domestic output (GDP).
I'm not here to stifle the enthusiasm of aspiring entrepreneurs who believe their idea might be the next unicorn. Instead, I believe ETA has a higher likelihood of a lucrative outcome and should be........