Codie SanchezFounder @ Contrarian Thinking

Starting vs Buying a Business…

2 Apr 2024 · 0 min

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A short conversational transcript in which Codie Sanchez and another speaker argue that acquiring existing businesses (acquisitions) is a faster, less risky path to significant wealth than starting businesses from scratch. They note starting feels easier and provides quick momentum, but acquisitions capture existing customers, brands, and profitability—making buying often the smarter choice today.

What most people don't realize is if you want real money, acquisitions is where real money happens. A lot of people are out there starting businesses when instead they should be looking to buy the ones that already exist.
That is the smartest way to go. I keep building them from scratch. I'm taking a bigger risk. It takes a lot longer. There's no reason for it. I'm getting older, I'm getting smarter. I'm thinking to myself, man, why don't I just buy that one that's already in existence? I've already got the clients, they've already got the brand, They've already got everything. Why am I doing all this from scratch?
I don't think you're crazy for doing that. Doing deals sucks until you close the deal. It's like when you start a business, you're like, ah, this is fun. We can get our first dollars kind of fast. There's like forward momentum that happens. That compounds when you start a business, when you do a deal, you're like, nothing, nothing, Pain, pain. Until finally you execute on a deal. I think it's actually normal that you start businesses instead of buy them because it feels less painful to start them. I think it's never been easier to start a small business, but it's never been harder to have a profitable small business.