What are some creative ways to obtain a business?

Owning a business is a dream path for people who want to be their own boss. Do you need to follow the traditional path of starting your own to achieve it?

Julie Messing is the director of Central Michigan University’s Isabella Bank Institute for Entrepreneurship. She shared her expertise on creative routes to business ownership and developing assets to make it grow.

Q. What are some non-traditional ways to open the door to business ownership?

Many people think of the new start-up venture when discussing how you can become a business owner. Starting a new business is invigorating, rewarding and challenging, but it is not for everyone. You do not have to have a brilliant new idea or come up with a “new mousetrap.” Rather many people pursue business ownership through acquiring an existing entity. Business acquisition can take on many forms. It can be through an outright acquisition, joining a family business ran and owned by a family member, or buying into a franchise.

Q. Are there industries where creative business acquisition works best?

Many industries have existing businesses that are ripe for acquisition. Industries that include independent restaurants or small businesses in the trades are popular today. It helps to look at industries where there are many small and/or independent companies.

Q. What are creative ways to obtain assets to help you grow an existing business?

Oftentimes acquiring a business opens more avenues for funding since there is already a track record with customers, sales, expenses, employees and assets. A banker or other funder sees less risk when the track record is there.

In addition to having debt from banks, there are leasing companies and sometimes industry specialists that focus on lending in the industry that they know well. A business owner can also be creative through partnerships with other entities, or gaining their first big customer before they have sales. In that case some customers can help the entrepreneur get started or acquire assets to meet the demands.

Q. Are the risks greater in taking a creative approach to business ownership?

The risks are oftentimes much less when buying into a franchise, family business, or outright acquiring a business with a track record.  

Q. Are there any resources to help people find creative routes to business ownership?

Yes, there are resources available to help. Some of them are found at your fingertips when you search online. This includes trade publications on franchising, sites that list businesses for sale, such as “BizBuySell” or “Michigan Business Brokers Association.” This can give you a glimpse into what is available and what information is typically shared on a potential acquisition. Beyond that you can meet with any of several experts including business brokers, and not-for-profit support resources such as the Small Business Development Center and the Michigan Employee Ownership Exchange.

About Julie Messing

Julie Messing is the director of CMU’s Isabella Bank Institute for Entrepreneurship. She is also president of Transitions Advisory Group, Inc., serving businesses as they make organizational transitions. She also discussed the future of businesses owned by retiring Baby Boomers on CMU’s podcast The Search Bar.

Prior to coming to CMU, Messing was the founding director of the College of Business Administration's Center for Entrepreneurship and Business Innovation and the Blackstone LaunchPad program, both at Kent State University. She was also a co-founder of the Entrepreneurship Education Consortium.