I’ve got an idea I’m working on. I know it will take a lot of work, and honestly, my best-case scenario for the first quarter is probably just breaking even.
The business would become profitable once it scales, but it could be attractive to a large adult beverage retailer. My question is, would it be bad to start a business with the end goal of selling it to a bigger company?
Or would it make more sense to start pitching or networking early with the type of companies I’d eventually want to sell to, once I have some traction and customers?
Again, I know it can be profitable with volume, so it wouldn't be a waste of time if it never gets acquired, but that would be the end goal.
I'm more than willing to explain the idea, btw, I just don't feel like typing it out.
Is it bad to start a business with the goal of selling it later?
byu/captain_salt_bag inEntrepreneur
Posted by captain_salt_bag
5 Comments
I’ve built and sold a small handful. After the first one, I only built to sell. In fact, there’s an amazing book by the same name. https://amzn.to/4oQAcVP
Building a business to sell it, even if you don’t sell it, you’ll add a ton of value just from the mindset.
That’s pretty much the (final) goal of any business, isn’t it?
I plan to run my business until it either kill’s me or the wheels fall off, but there’s nothing at all wrong with building a business just to sell.
Remember, the people who take a business to 5m in revenue are different than the ones who take it to 50m. If you like building it just enough for it to be valuable to someone else, then grip it & rip it.
What else would you do with it in th end if not sell?
This is exactly how you should approach it.
The name for these types of businesses is “Flip-meat”.