This article are provided for information purposes only, and are not intended as legal advice.

Do you buy multiple businesses which are bankrupt?

April 2nd, 2009

Depending on the size of the business, do you buy one, two or more businesses which are bankrupt?  This depends on your strategy.  If you owned a restaurant and bought from 10 different suppliers, would you not buy from one company if they could provide all your products for the same or lower prices?  Mr. Entrepreneur buys a bankrupt company and the customer list.  The company had just closed its doors therefore the contracts with customers were still valid. He buys this company and starts to produce products for this company.


Mr Entrepreneurs buys company 2 and 3.  Each has their own customer list which is complementary to the first company he purchased.  Now he starts to sell his products to the customers of all 3 companies.  What did Mr Entrepreneur do?  He acquired businesses which failed because they did not have critical mass but a good customer base.  He bought complementary businesses which would all sell to the same customers effectively tripling the number of customer that each company owned.  The companies were located in multiple countries to take advantage of lower labour rates.  He now had critical mass and instantaneously, all three companies became profitable.


What did this require – vision, a business plan, thinking outside the box.   Is this a true story – definitely, this is the success story of one entrepreneur.  There are many other entrepreneurs out there that  have success stories as well.    This shows that entrepreneurs can think outside of the box.  They can look at a glass and say that it is half full, others look at the same glass and say it is half empty.  Are optimists risk takers or visionaries?  Who has a greater chance of success?  Which one do you want to be?

Filed under: Business opportunities — Gary Landa @ 9:00 am

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