The path to independent wealth is the same now as it has been for the past thirty years: owning your own business. Working as an employee carries benefits, to be sure, but the cap on your income potential is usually unremarkable.
Of course, this sphere has multiple paths: startups, franchises, and purchasing an existing business. At Springtree Group, we believe that the swiftest of these paths is purchasing an insurance agency that is already thriving. The framework established by the previous owners will give you an excellent place to start as you develop your own ideas for the direction of your company.
Let’s examine the intricacies of buying an existing business vs. starting one from scratch.
Starting a Business from Scratch
Starting a business requires an immense amount of time and dedicated focus. Rather than being able to work your existing job while you step into your new role as business owner, you will have to rely on your savings and investments while you work (on average) 80 hours per week getting your business off the ground.
This costly, time-consuming endeavor has no guarantee of succeeding, either. Despite our country’s overall wealthy economy, “[…] 18% of small businesses fail within their first year, while 50% fail after five years and approximately 65% by their tenth year in business.”
Even if your business were to succeed, you would likely have to wait five years to have the capital required to pay your own wage. What would your financial situation be after five years of zero income, or even negative cash flow?
If this prospect is a deterrent to your aspirations, let’s explore your next option.
Purchasing a Healthy Business
Rather than bracing yourself for the pitfalls of launching a brand new business, we suggest purchasing a healthy business that is working on a fully supported framework. The benefits are equal to what you would hope to achieve through a startup, yet you’ll leap-frog straight to the end of that five-year struggle.
When you purchase an insurance agency with Springtree Group as your intermediary, you can select an agency that has a history of success stretching back several years—or even decades. Examine the financial statements, look at the books of business, research the employee structure, and ultimately make a fully informed decision regarding your investment.
By purchasing an established agency, you will gain immediate access to the client base as well as the network of providers with whom the agency has developed relationships. This dynamic forms an ideal foundation for your own continuing entrepreneurship. If you continue to put in the level of hard work that has made it a thriving business thus far, you can rely on its income well into the future.
The Takeaway
If you plan to become an entrepreneur in the next year, Springtree Group should be your first point of contact. We liaison between motivated sellers and buyers like you, ensuring that each transaction meets the needs of all involved parties.
Furthermore, we provide in-house financing for our buyers. This is a must in the current financial landscape, where traditional lenders simply do not understand how smaller, private insurance companies are bought and sold.
To break away from the restrictions of work as an employee or to expand your current holdings, contact Springtree Group today.
