Starting vs. BuyingBuying a Company

Starting vs. Buying

It's true that starting a startup is often glorified. You frequently hear success stories on platforms like TechCrunch or LinkedIn, where people secure millions from investors with just a pitch deck or build a multibillion-dollar empire from their garage. We're sorry to say, but that's often just good marketing.

Starting a New Business

Comparison between Starting a New Business and Buying an Existing One:

Track Record

Founders start from scratch. Whether you make it to the top is uncertain and fraught with numerous risks.


It's a misconception to think you'll find investors before you've already sold companies or been a co-founder of prominent startups. Even "Day 0 investors" don't exist.

Business Model

The risk is high because the business model hasn't yet been established in the market or still needs to be. Unfortunately, many companies are founded that the world doesn't really need.


At the beginning of a startup, there are often no customers available, and it requires a significant amount of time to acquire customers.


With a startup, it often takes a while before the company generates revenues. This longer time until profitability increases the risk of failure. Typically, at least three years pass before there's enough money left to pay the rent.

Brand Awareness

Building recognition, reputation, and image is painstaking and fraught with many pitfalls. As long as nobody knows you, nobody will buy from you.

Buying an Existing One

Comparison between Starting a New Business and Buying an Existing One:

Track Record

Success is predictable, provided you have existing customers, a well-functioning team, a successful business plan, and an effective marketing and sales strategy.


The purchase of a company can often be financed through the company's cash flow. Debt financing is often the key term here.

Business Model

Buying a company could be the key to success for you. A model that has been in existence for many years carries a high potential for security.


When buying a company, you not only acquire a valuable existing customer base but also the opportunity to attract new customers.


A profitable company not only generates revenue from day one but also profits.

Brand Awareness

The risk of failing in the market is lower because the company has already carved out a place for itself and demonstrated perseverance.

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What makes Dragon Founders unique?

It's time to stop chasing the wrong role models and instead develop the right skills crucial for success. All those stories about people winning millions from investors with a pitch deck or building an empire from their garage - that was simply brilliant marketing.

Still unsure if buying is right for you? Take the free test and find out if you have the right profile. We can also discuss your entrepreneur profile together for free. Just click 'Entrepreneur Test' below.

Dragon Founders

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