784: Smarter Than a Startup: Buy, Manage and Run a Business the Risk-Reduced Way with David Barnett

David Barnett is a business expert who has helped many people buy and sell businesses. He is the author of the book "Smarter Than a Startup", which provides a risk-reduced way for people to get the business of their dreams up and running. Today, David discusses the advantages of buying an existing business over starting a new one from scratch. He explains how buying a business with existing customers, sales, and profits can make it easier to secure financing and reduce the overall risk compared to launching a brand-new venture.

In this episode of Marketer of the Day, Barnett shares his expertise on how aspiring entrepreneurs can strategically buy businesses and optimize them to suit their goals. He discusses the advantages of acquiring businesses with existing customers and cash flow, the importance of structuring deals with protective clauses, and creative ways to use business resources for additional ventures, such as testing new products. He highlights the distinction between investing and speculation, particularly in industries affected by external factors like the pandemic. Barnett’s current work includes consulting, his podcast Small Business and Deal Making, and his book Smarter Than a Startup, all designed to educate entrepreneurs on minimizing risk while maximizing opportunity. His guidance empowers buyers to approach business acquisitions strategically, balancing growth ambitions with financial prudence.

Quotes

“Buying a business may still be the path to create your new business while reducing risk in a tremendous way.”

“Even if you buy a business, you can pivot it or use its resources to pursue your dream.”

“Businesses are asymmetrical systems—a small decline in sales can mean a big decline in profits.”

“Buying a distressed business is speculation, not investing—you could be signing up for losses until things recover.”

Resources

• David Barnett: Small Business, Local Investing, Private Lending, Borrowing, Business Buy/Sell, Franchise Issues, Being Heroic
• Connect with David Barnett on LinkedIn
• Subscribe to David C Barnett Small Business & Deal Making Podcast hosted by David Barnett on Apple Podcasts
• Get a copy of Smarter Than a Startup: The risk-reduced way to get the business of your dreams up and running by David Barnett on Amazon

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Filed in: Archive 4: 2020-2023 • Interview • Podcast