Risks

0

Risks

  • Lower revenue after purchase
  • loss of customers to competitors
  • tech you have invested in crashes
  • unable to pay employees that depend on you
  • won't have a familiar peer group at work

Mitigate your risks and find a business that is enduringly profitable

  • business should be established and growing slowly with recurring customers
  • stay away from businesses that "just" need a turnaround
  • stay away from tech companies or volatile industries
  • great businesses are often "dull"

Alternatives to entrepreneurship through acquisition may be more risky

  • doing a startup (i.e. building from scratch) is also risky
    • you don't know if product or service will be profitable
    • takes time to develop, find customers, deliver, hire, market, build management system
  • working at a company is also risky
    • job loss
    • less flexible

  • 0 posts
  • 0 subtopics
  • 2 months ago by vince