Entrepreneurs make the giant step of starting a business for a myriad of reasons. Being your own boss usually is the most compelling. Americans grow up in a country that encourages and rewards initiative and drive. The wish for autonomy and a need of self expression often speaks loudly within entrepreneurs.

While self-actualization drives you toward business ownership, a successful business takes much more than an inner drive of self-expression. If anything, owning your own business teaches that rules, policies, procedures, hard work and commitment along with following excellent business principles determine success or failure. The hard facts indicate that 50% of all new small businesses fail within 3 years and within 5 years, 70% fail.

Want to beat those odds? Consider using your entrepreneurial drive by purchasing an existing profitable business. But prepare beforehand by understanding that jumping into an existing business and changing everything spells disaster. So the downside of purchasing an existing business means letting go of that “self-actualization” dream and dictating every aspect of the business. But the upside means a business with a better chance of success, an existing customer market, established cash flow and proof of a business concept that works.

An existing business certainly provides room for tweaks, better or streamlined business methods, additional product lines and growth. Once you run the business day to day and become knowledgeable about what works and what needs improvement, you find the areas needing your personal entrepreneurial flair. Over time and experience the existing business slowing gets worked into your business with your personal stamp; but tread slowly so that you retain customers loyal to the business.

In future posts we discuss more about purchasing existing businesses.