Start-up hustle a fairytale: ‘build it from scratch’ not only success story
By Holly O'Connor
Don’t start a business, buy one. Co Founder of Flippa @Mark Harbottle says ‘Buy your way to growth’. ‘Why aren’t more founders considering acquiring an existing business with traction — not only as a growth strategy but as a go-to-market strategy for their start-up? Why not acquire a business with existing products, customers and cash flow — something they can leverage as a foundation to grow their empire?’
According to the Small Business Association (SMB), 30 per cent of businesses fail in the first two years and 50 per cent within five years. US census data suggests only 9 per cent of small businesses, where the owners run them full-time, have more than $1 million in sales annually. So if you manage to “hustle” your way through the first few years of your start-up, chances are your business won’t grow beyond $1m in revenue.
Of course, it’s not all doom and gloom. There are many great founders capable of producing amazing products. Some early-stage start-ups solve real problems and have a huge market opportunity, but the majority struggle to find sustainable distribution channels and consistent growth.
This was originally published in The Australian, click here to continue reading.