The failure rate of startups is 90% according to a Forbes article published by Neil Patel.
If I told you that there was a 90% chance you would die if you jumped off of a plane, would you do it?
My guess is NO!
Any yet the idea of launching your own startup business is as popular as ever despite the pandemic we’re facing right now.
Just look at these headlines from major mainstream media outlets:
More people than ever have started opening startup businesses of every kind.
Despite a 90% failure rate, people are still starting new businesses.
It’s the popular thing to do now it seems.
If you really think about it, you’re not being a maverick by starting a business and quitting your job…
You’re just part of the trend that everybody else is a part of.
I make no friends saying this.
But startups are a dead-end for most people.
Because they’re inherently exposed to 8 problems.
Problem #1 – Lack of Money
Problem #2 -No Product-Market Fit
Problem #3 – No Employees
Problem #4 – No Processes
Problem #5 – No Marketing
Problem #6 – No Sales
Problem #7 – No Revenue
Problem #8 – Lack of time
Startups have a limited runway before their funding runs out and the business goes in flames.
The sheer number of unknown variables to solve is extremely difficult and time consuming.
Plus, you’ll probably pay yourself peanuts and eat ramen noodles while you try to make everything work for your startup business.
According to WeWork, if a founder of a startup raises $500,000 USD in funding then he can expect to on average earn an annual salary of $35,529 USD.
Do you want to get paid $35,529 per year? F*** that.
If you assume funding between $5 million to $10 million then that number jobs to a modest $62,150 USD.
That still sucks in my opinion.
Combined with the 8 problems and the low salary, startups are not a viable path toward financial freedom, and wealth creation with low risk.
In fact, starting a business will create financial stress, and deplete your wealth for a long time.
If you’re considering starting a business, don’t.
Here’s what I recommend:
While others are following the sexy trend of starting a business and hoping to succeed, take the road less traveled and acquire a business!
Instead of starting from scratch and trying to do everything yourself, learn how to acquire businesses using other people’s money.
And only acquire businesses that have weathered economic recessions, are generating $1 million in gross revenue, and have a proven track record of steady profits.
This is about taking over a proven system, a profitable business, and scaling it beyond the current owners.
The previous business owners have done you a HUGE favor by solving the 8 problems that plague a startup.
Once you acquire/buy the business, your job is to pour gasoline and scale the business from $1million to $2million and beyond with better marketing and sales.
And this is exactly what I’ve been doing for over 20 years, and I have 50+ students who have replicated my process and acquired/bought businesses for themselves.
I discovered this little known path of entrepreneurship called Acquisition Entrepreneurship many years ago.
It changed everything in my life.
And I think it can change your life too!