Buying a business and building a business present their own set of risks and rewards. In this episode of Dealmaking with Laura Difrancesco, Laura discusses what to expect from both processes. Buying and building a business present unique risks, so it's important to be prepared for either. Laura discusses the upfront and long term costs associated with each. Buying a business typically presents more upfront costs; however, it's easier to secure finances and an income from the beginning. Building a business costs as much money as you put into it, but usually takes more time and less initial returns. She also emphasizes the importance of understanding the barriers to enter the business, whether they be based on the market or your own personal preferences of culture and function. Laura also discusses topics such as timelines, emotional risks, and investing as a buyer.,Both processes take a lot of emotional and financial investment, so it's important to make sure you are making the right decision for you.
What You’ll Learn
Risks of Building a Business and Buying a Business
// Owning a business in any sense includes some sort of risk. Understand the unique risks that each business endeavor presents.
Costs and Financing of Building versus Buying
// Buying a business might present more upfront costs; whereas building a business costs as much money as you put into it. However, it's typically easier to secure finances towards buying a business.
Barriers to Entry
// Elements such as the market or culture of certain businesses create different barriers of entry, whether that be personal or financial.
Importance of Investing as a Buyer
// If a buyer doesn’t have their own skin in the game, sellers become more hesitant to sell a business to them.
Episode Highlights:
[00:00] Introduction to Dealmaking with Laura DiFrancesco
[04:05] Building Versus Buying a Business
[07:29] Weighing the Risks
[09:10] Dean Street Law
[10:08] Understanding Costs and Financing
[12:36] Barriers to Entry
[21:15] Timeline of Building and Buying a Business
[25:33] Acquisition Insights
[26:31] Upfront Risk
[28:35] Importance of Investing as a Buyer
[30:17] Emotional Risks
[31:42] Early Mistakes Buyers Make
[34:47] Outro
Resources Mentioned
Entrepreneurship through Acquisition: A Legal Guide to Buying a Small Business Waitlist
For free legal guides and resources click HERE.
Unlock your legal roadmap to success with Acquisitions Insights
Schedule your complimentary consultation with Dean Street Law today!
Connect with Us
Follow on Twitter: @LMDiFrancesco
Follow on Instagram: @lauramdifrancesco and @deanstreetlaw
Connect on LinkedIn: linkedin.com/in/lauradifrancesco
Our Sister Brands
Follow Flourish Coworking Space on Instagram: @flourishwestchester
Follow Ethereal Farms on Instagram: @etherealfarms
Check out my other podcast We Grow Together on Spotify and Apple Music
Don't miss an episode of "Dealmaking with Laura DiFrancesco." Follow me on your favorite podcast platform and visit deanstreelaw.com to schedule a consultation today. Whether you're a seasoned entrepreneur or stepping into the world of mergers and acquisitions for the first time, let us guide you to success.
Follow, rate, and review to help us reach more aspiring dealmakers like you!
Credits
Host // Laura DiFrancesco
Executive Producer // Teagan Rowland
Editor // Jules Bernardo
Associate Producer // Jules Bernardo
#buyingabusiness #startingabusiness #dealmaking #corporatelaw #lawyer #mergersandacquisition #mergers #acquisition #acquisitioninsights #buisness #deanstreetlaw #corporateattorney #billion #billiondollardeals #billiondollars #finance #realestate #M&A #duediligence #contracts #NDAs #antitrustlaws #codeofconduct #regulatorycompliance