Knowledge Marketplace
My First Million

My First Million

The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.

Back to Trends
investment

Individual investors buying small businesses instead of starting them

Timeframe: 5-10 year trend with acceleration in last 3 years

What's Changing

More individuals choosing to acquire existing cash-flowing businesses rather than start from scratch, driven by awareness of acquisition opportunities and SBA lending accessibility

Driving Forces

Information democratization about business buying

SBA loan accessibility for smaller deals

Recognition that starting businesses has higher failure rates

Aging baby boomer business owners creating supply

Winners

  • SBA lenders specializing in business acquisitions
  • Business brokers in small deal market
  • Service providers (lawyers, accountants) for small deals
  • Individuals with deal-making and operational skills

Losers

  • Traditional startup ecosystem for certain demographics
  • Business owners who wait too long to sell
  • Industries being consolidated by roll-up strategies

How to Position Yourself

1

Build relationships with business brokers early

2

Develop SBA lender relationships before needing them

3

Focus on unsexy, stable industries rather than trendy ones

4

Build operational skills to add value post-acquisition

Early Signals to Watch

SBA loan volumes for business acquisitionsBusiness broker transaction volumesPrivate equity moving upmarket leaving gapEducational content consumption about business buying

Example Implementation

“Individual identifies local HVAC business with retiring owner, uses SBA loan to acquire for 4x EBITDA, implements basic marketing and systems to grow cash flow 20% annually”