Why Buying Beats Building

Starting a business from scratch can be a daunting task, with long hours, low pay and new obstacles seemingly every day. This is especially true for women entrepreneurs, who often face additional hurdles not encountered by their male counterparts. That’s why Leslee Hill, program director at WEOC’s Women’s Business Center (WBC), suggests that acquiring an existing business may offer a smarter, more strategic path to success. By purchasing an operational business, women can seize unique opportunities, bypassing many of the early challenges startups face and positioning themselves for growth from day one.

“By purchasing a business that’s already operational, entrepreneurs can benefit from immediate cash flow so they can pay themselves from day one,” Hill says. “This means they can focus on learning and growing the business, rather than struggling to get it off the ground and forgoing a paycheck for months, sometimes years.”

WEOC has seen growing interest in acquisitions among women entrepreneurs as a result.

“We’ve had many conversations with women who realize that buying a business could give them a head start, allowing them to focus on innovation and growth rather than navigating the challenges of a startup, which can be really, really hard,” Hill adds.

Katie Austin is a shining example of how this can work. A single mother for many years, Austin entered the Launch Women Business Builder Pre-Accelerator determined to turn her SaaS (Software as a Service) idea into a reality. She was so committed that she quit her job and joined a tech startup. However, the experience of constantly putting out fires, combined with the realization that she wouldn’t be able to pay herself for years, made her reconsider her path.

Rather than abandoning her dream, Austin remained involved with WEOC and began exploring the option of purchasing an existing business. She connected with a CPA and attended co-hosted trainings, and recently made the leap to business ownership by acquiring an existing company. Her journey illustrates how, with the right support and guidance, women can bypass the challenges of starting from scratch and find success through acquisition.

Another factor driving the push for women to consider business acquisition, Hill says, is the “silver tsunami.” This wave of baby boomer business owners is nearing retirement age and needs to begin succession planning. Encouraging women to step into these roles and acquire these businesses not only ensures a smoother transition, but also helps retain jobs and attract new talent in the communities they serve.

WEOC is uniquely positioned to help women through this process. With tailored services, including mentorship programs, business coaching and access to funding resources, WEOC helps women entrepreneurs in Allen County or the 10 surrounding counties evaluate potential acquisitions and develop strategies for growth. 

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