Buying a business can be one of the most exciting—and challenging—decisions you’ll ever make. It’s a chance to take something that’s already built and make it even better. But there’s one common mistake that I see time and time again: buying a business in an industry you don’t know much about.
It’s a trap that’s easy to fall into, especially for entrepreneurs. We tend to think, “I can figure it out; I’m good at learning on the fly.” And while that confidence is a valuable trait, it can also lead to unnecessary struggles when you’re diving into unknown territory. Acquiring a business is already a heavy lift, and adding the challenge of learning an entirely new industry only adds more weight.
The Two Big Challenges of Owning a Business in an Unfamiliar Industry
1. Due Diligence Can Be a Blind Spot 👀
When you’re not familiar with the industry, it’s easy to overlook critical details during due diligence. There might be red flags you don’t recognize, operational nuances you’re unaware of, or market trends you simply don’t understand. These are the kinds of things that can come back to bite you later. If you’re busy trying to grasp the basics, it’s a lot harder to make informed decisions about running the business day-to-day. And when cracks start to show, they can quickly become bigger issues that affect your bottom line.
2. Adding Value Becomes a Major Hurdle
One of the main goals of buying a business is to take it to the next level. But how can you do that when you’re still trying to figure out how the industry works? Entrepreneurs in this situation often get stuck in “learning mode” rather than focusing on growth. Instead of innovating and finding ways to create more value, they’re bogged down with trying to understand the basics. That’s time and energy you could be putting toward scaling the business and boosting its profitability.
So, What’s the Solution?
The simplest advice is to stick to an industry you already know. If you have experience in a field, the transition will be much smoother, and you’ll be able to spot opportunities for growth right out of the gate. You’ll spend less time learning and more time strategizing, leading to quicker wins and a more successful venture overall.
But what if there’s a business outside your comfort zone that you’re really interested in? You’re not out of luck—you just need a different approach. Bringing on a partner with the right experience can bridge the gap. Having someone who understands the industry from the inside out can make all the difference. They’ll know the pitfalls to avoid and the best strategies for growth, allowing you to focus on what you do best.
If you’re in this situation and need help finding the right partner, that’s where I can step in. I’ve built a network of professionals across various industries, and I can help connect you with someone who has the expertise you need. Whether you’re looking for a partner or just exploring your options, don’t hesitate to reach out—I’d be happy to help.
The bottom line? Stick to what you know, or get the right support in place. It’s the smartest way to set yourself up for success when buying a business.
