The CEO of CEO Advisory Guru, LLC and author of best-selling books such as The Private Equity Playbook and The Exit-Strategy Playbook is a firm believer that true wealth is not generated by working for others but by creating a business and turning it into an empire. Drawing from his 21-year career as a CEO for three private equity-backed companies, where he bought 58 companies and achieved billions of dollars in exits, he now helps others build true wealth by turning businesses into something greater through his coaching business.
While owning a business can be rewarding, it is also not without risk. Statistics show that a large percentage of small businesses fail within the first few years, making it a challenging endeavor. However, the CEO Advisory Guru emphasizes that there are strategies that can help beat the odds, especially when it comes to deciding whether to buy an existing business or build from scratch.
In the current market, there is a significant transfer of wealth happening as Baby Boomer entrepreneurs look to retire and sell their businesses. This presents an opportunity for a new generation of entrepreneurs to acquire an existing business that already has a track record of revenue, earnings, and customer satisfaction. By conducting thorough research on a pre-existing business, the risk of failure can be significantly reduced compared to starting a new venture.
To increase the odds of success, the CEO Advisory Guru recommends focusing on businesses that align with your skills, passions, and the needs of the market. By identifying industries that fulfill needs rather than wants, entrepreneurs can ensure their businesses have a greater chance of thriving even in challenging economic conditions. Additionally, targeting companies with recurrent revenue streams can provide a more stable income source and reduce the need to constantly acquire new customers.
When evaluating potential business acquisitions, it is essential to consider the financials and ensure that the company has low capital expenditures, strong profit margins, and meets certain benchmarks such as the 30/20/10 rule. Acquiring a business that has already survived for several years and has a solid foundation can put entrepreneurs in a position of strength to take the business to new heights and create sustainable wealth for themselves and their families.
By following these strategies and focusing on acquiring businesses with proven track records and strong financials, aspiring entrepreneurs can increase their chances of success and build true wealth by turning existing businesses into empires. The expertise and guidance provided by the CEO Advisory Guru can help individuals navigate the complexities of entrepreneurship and achieve lasting success in the business world.
