Starting a New Business: Is it Worth it?
Renowned real estate mogul Grant Cardone recently ignited a debate with his bold statements on entrepreneurship and business investments. In a video posted on Instagram, Cardone expressed strong opinions about the challenges of starting a new business.
According to Cardone, starting a business today is the “dumbest, most selfish thing a person could do.” He emphasized the unrealistic expectations and difficulties that new entrepreneurs often face, stating, “You can’t work for somebody else. How are you going to work for yourself? You don’t even know what you’re doing. You can’t even pay rent.”
Cardone went further to mock the idea of being your own boss and thinking you can make all the rules and have total freedom. He warned that in reality, you would become both the slave and the master, working tirelessly for nothing.
Instead of starting from scratch, Cardone advised aspiring business owners to consider buying an existing business. He pointed out that there are millions of struggling or unprofitable small businesses in the US market. By acquiring a business that already has customers, cash flow, and operational systems in place, entrepreneurs can bypass many of the challenges associated with starting a new venture.
Cardone’s pragmatic approach to entrepreneurship resonates with investors and entrepreneurs looking for sustainable business models. He believes that a good business is one that cash flows and can scale without being solely dependent on the owner’s time, talent, or skill. Cardone cites real estate and banking as industries where such scalable business models thrive.
For those interested in real estate investment without the complexities of direct ownership, options like purchasing shares in real estate investment trusts (REITs) or participating in crowdfunding platforms can be viable alternatives. These methods allow investors to own a portion of physical properties, such as rental units or commercial spaces, which generate income with reduced responsibilities in property management.
Cardone’s advice may be controversial, but he has demonstrated his ability to generate wealth throughout his career. Starting as a car salesman, he ventured into property investment by purchasing a single-family home in Houston. However, he learned the risks of relying on a single tenant for income when his tenant left abruptly after seven months.
To mitigate this risk, Cardone shifted his focus to multifamily complexes in San Diego, using the income from his initial properties to finance subsequent purchases. Gradually expanding his real estate portfolio, Cardone’s efforts paid off significantly, with his company being recognized for conducting some of the largest private-party real estate transactions in Florida.
While opinions about Cardone may vary, his advice offers an alternative perspective on entrepreneurship and business ownership. Considering the existing opportunities and potential upsides of buying an established business may provide a more sustainable path to success in today’s competitive market.