GraphedMinds
My First Million

My First Million

The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.

Back to Trends
investment

Individual investors buying small businesses instead of starting them

Timeframe: 5-10 year trend with acceleration in last 3 years

What's Changing

More individuals choosing to acquire existing cash-flowing businesses rather than start from scratch, driven by awareness of acquisition opportunities and SBA lending accessibility

Driving Forces

Information democratization about business buying

SBA loan accessibility for smaller deals

Recognition that starting businesses has higher failure rates

Aging baby boomer business owners creating supply

Winners

  • SBA lenders specializing in business acquisitions
  • Business brokers in small deal market
  • Service providers (lawyers, accountants) for small deals
  • Individuals with deal-making and operational skills

Losers

  • Traditional startup ecosystem for certain demographics
  • Business owners who wait too long to sell
  • Industries being consolidated by roll-up strategies

How to Position Yourself

1

Build relationships with business brokers early

2

Develop SBA lender relationships before needing them

3

Focus on unsexy, stable industries rather than trendy ones

4

Build operational skills to add value post-acquisition

Early Signals to Watch

SBA loan volumes for business acquisitionsBusiness broker transaction volumesPrivate equity moving upmarket leaving gapEducational content consumption about business buying

Example Implementation

“Individual identifies local HVAC business with retiring owner, uses SBA loan to acquire for 4x EBITDA, implements basic marketing and systems to grow cash flow 20% annually”

Related Knowledge

Idea

No-Fee Private Equity Fund

Traditional private equity charges high fees (2% annually) and uses excessive leverage, creating alignment issues and do

Same episodeComplements
Framework

Stacking Golden Geese

Sequential acquisition strategy where each successful business acquisition funds and de-risks the next, creating compoun

Same episode
Framework

High Authority vs Delegated Authority Model

Binary leadership approach where you either operate with complete top-down authority or delegate full decision-making au

Same episode
Playbook

Acquire first cash-flowing business with minimal capital

Own a profitable business generating $200K-500K annual free cash flow that doesn't require your daily presence within 2

Same episode
Mental Model

Just-In-Time Learning

Learn skills and knowledge precisely when you need them for specific situations rather than trying to learn everything u

Same episode
Mental Model

Constraints-First Decision Making

Start any major decision by clearly defining your constraints rather than exploring all possibilities

Same episode