There are two routes to becoming a business owner.
One route — launching a new venture — has a success rate of just 10 percent.
The other?
When entrepreneurs purchase an established business, their success rate is between 75 to 85 percent.
This alternative path isn't often discussed, but perhaps it should be.
The significant difference in success rates challenges the traditional belief that buying a business is riskier than starting one.
It also uncovers a crucial truth about wealth creation — the best opportunities are frequently right before us.
Consider it this way:
Acquiring an existing business means you’re not beginning from zero. You’re managing an operation with an established history.
There’s no need to dig into your savings in hopes that customers will come.
The customers are already present. The operations are already efficient. The cash is already flowing.
This approach turns the usual entrepreneurial strategy upside down. Instead of questioning whether your idea will succeed, you begin with evidence that it already does.
Then, you can concentrate on enhancing the business: perhaps by upgrading systems, improving customer service, or discovering more efficient operational methods.
The difference isn’t just financial; it’s also psychological.
When you start a business, your unique abilities form the vision and direction you provide to the enterprise.
However, succeeding in business acquisition requires a different skill set. You’re not innovating the next big idea; you’re honing your ability to recognize value that others might overlook.
In essence, you become a value investor.
Recently, I spoke with an expert who has mastered this strategy.
Codie Sanchez joined me at the Afford Anything studio in New York City to share her approach to acquiring profitable local businesses.
She has built a nine-figure holding company (yes, that’s correct) by purchasing everyday businesses.
We’re talking about laundromats, car washes, dry cleaners, HVAC services, plumbing companies, and cleaning services.
These businesses may not seem glamorous, and they likely won’t make the cover of Fast Company. But they have one vital characteristic:
They address real issues that will persist. Toilets will always need repair. Offices will always require cleaning. Construction companies will continually need equipment.
While tech startups chase the next big innovation, these Main Street businesses consistently generate steady cash flow by tackling everyday challenges.
This creates a solid foundation for dependable cash flow that is often more accessible and sustainable — and frequently more profitable over time — than pursuing unicorns in Silicon Valley.
Codie has garnered 8 million followers across social media and 750,000 newsletter subscribers.
In our discussion, we cover:
✓ Why private equity firms are acquiring Main Street businesses (here’s a hint: that’s where the dependable cash flow is!)
✓ The statistics regarding business ownership and millionaire status
✓ How owning a company can create multiple income streams and lasting wealth
Below, we outline the complete playbook.
Here’s my full conversation with Codie.
There are two routes to becoming a business owner.