In this article, we will talk about one of the unusual business ideas that is rarely put into practice among aspiring entrepreneurs, and yet extremely effective over a long period of time.
It’s about organizing a business for sale
The essence of the business idea is to create an enterprise not to receive income from its activities, but for subsequent resale.
Who needs an enterprise that does not generate income, you ask. The answer to this question is simple: those who benefit from it buy.
If you look at what one of the richest people in the world, Warren Buffett, who is considered the best investor over the past few decades, is doing, then, in fact, this is exactly what his business consists of. Buffett buys shares of non-market leaders and then resells them for a huge profit.
The most important thing is to guess which company will grow in value.
This is what Buffett does very well, which is why people pay $10,000 for one meal with him.
Well, it’s in America. And in Russia, who needs businesses organized for sale?
Suppose there is a large government order for millions or billions of dollars. There is also an entrepreneur who has the resources to fulfill this order, has connections and information. But:
— firstly, it is somehow connected with this state order, and,
Secondly, his company has already received orders from this source.
It is logical to create a new enterprise that will not be legally connected in any way with the first one. However, there is little chance of getting a large state order from a new, newly created enterprise. And then a search is made and the purchase of some old enterprise that does not generate income, but has a good reputation and does not have debts.
That is, the essence of the business of selling a business is precisely to create an enterprise, keep it afloat for several years, regularly paying taxes, and then resell it to those who wish, making a good profit.
Setting up a business for a subsequent sale is not uncommon, just few people use this business idea. For example, sites of a certain subject are created, and after a couple of years they are resold to a new owner, who uses the age of the site as a launching pad, since search engines also pay attention to this argument.
Or a small cafe opens in the city center, which is then sold for a lot of money because of its convenient location. Or a newspaper of no interest to anyone is published, which is resold to one of the candidates during the election campaign.
There are a lot of options for reselling a business. However, for this type of entrepreneurship, you need to have one invaluable property: patience. Because the created enterprise will bring profit only in a few years.