Make Money by Buying or Starting a Business

Sep 7, 2025

Dive into the great debate: is it better to buy a business or start from scratch? Discover hidden risks many overlook, especially for novices without prior experience. Learn how backgrounds shape acquisition success and the challenges of transitioning ownership from retiring boomers. Hear why mentorship and local business connections are crucial for budding entrepreneurs. Get actionable strategies on negotiations and the importance of real-world learning. In the end, the path to business success is all about your unique circumstances!

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INSIGHT

Buying Isn’t Always Easier

Buying a business is not universally easier than starting one; outcomes depend on prior skills and background.
Wall Street MBAs and experienced operators have transferable skills that novices usually lack.

ADVICE

Don't Buy If You Lack Financial Skills

Avoid acquiring a business if you have zero finance or operational experience and would take on large debt.
Don't saddle your family with SBA loans unless you can analyze P&Ls and run the operation.

ANECDOTE

HVAC Tech Turned Multi‑Seven Figure Exit

Travis recounts a friend who rose from HVAC tech to selling his company for multiple seven figures.
He learned operations over 15 years after taking over the owner’s business, not via an immediate leveraged buyout.

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Travis and his producer Eric dive deep into one of the most common (and misleading) debates in entrepreneurship: is it actually smarter to buy an existing business, or should you build one from zero? Travis brings candid perspective, real stories, and actionable advice—covering who’s really ready for acquisition, when it’s a disguised risk, and why the right answer depends entirely on your background, skills, and life stage.

On this episode we talk about:

The hidden risks “business buying” gurus don’t tell you about online
Why Wall Street MBAs and local blue-collar workers face VERY different realities in business acquisition
The true story behind seller financing, ownership transitions, and the “great wealth transfer” from retiring boomers
The pitfalls of buying a company with zero operational experience—especially with employees depending on you
How to develop entrepreneurial skills the right way: from humble beginnings, mentorship, or free resources like Alex and Layla Hormozi’s content
The value of real-world learning, local partnerships, and being brutally honest about risk when families and finances are on the line

Top 3 Takeaways

1.  Buying a business is viable for those with real operational, financial, or sector experience—but is highly risky for novices with no background or mentorship.
2.  Free educational content (like what’s offered by the Hormozis) and relationships with local business owners offer low-risk ways to get business skills—don’t shortcut this step.
3.  Every path is unique: don’t get swept up in romanticized social media pitches. Assess your own knowledge, resources, and risk tolerance before making a major entrepreneurial leap.

Notable Quotes

"Don’t fall into the trap of social media dreams—what worked for a Wharton MBA may be disastrous for an aspiring entrepreneur in small-town America."
"There are multiple ways to win at this game, but skipping the humility and the homework is the fastest way to lose."
"If the deal looks too good to be true, ask more questions—and remember, you owe your employees and your family your best preparation."

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