If you’re reading this, chances are you’ve had that itch. The “I want to start my own thing” itch. Maybe you’ve been dreaming of building a business from the ground up, watching YouTube videos on branding and reading articles about how to go viral on LinkedIn.
But here’s a different take — one most people never hear from their accountant, attorney, or favorite business guru:
Instead of building a business from scratch… why not just buy one?
This isn’t some flashy private equity play or a pitch for flipping franchises. It’s a real, strategic move for smart operators who want cash flow, control, and serious tax advantages without the five-year struggle of getting a startup off the ground.
Why Buying Makes More Sense Than Building
Let’s be honest — building a business is hard. Most fail. The failure rate for new businesses hovers somewhere between 45% and 65% within the first five years, depending on which dataset you trust.
But when you buy an existing business, you inherit a customer base, trained staff, working systems, and (if you structure the deal right) a boatload of tax benefits. You’re walking into momentum, not trying to generate it from scratch.
Now, I’m not here to say everyone should skip entrepreneurship. But I’ve met plenty of people who were never builders — they were operators. People who thrive on running things better, not inventing things from nothing.
If that’s you, buying might not just be the better financial decision… it might be the more natural one.
The Power of Depreciation: Turning Assets into Deductions
Here’s where it gets interesting.
When you buy an existing business, you’re not just buying goodwill or brand equity. You’re buying furniture, fixtures, and equipment (FF&E). You’re buying computers, machinery, shelving, signs — the bones of the operation. And under current IRS rules, you can often depreciate those assets over time. In many cases, you can even use bonus depreciation or Section 179 to write them off much faster.
Imagine buying a small manufacturing company. You pay $500,000 for the business, and $150,000 of that is allocated to depreciable equipment. With a smart tax strategy, you could deduct that $150,000 over a few years, or possibly all in year one, depending on how the assets are classified.
That deduction doesn’t just lower your tax bill. It offsets the income the business generates, letting you reinvest more of your profits into growth, staffing, or paying down the loan you used to buy it in the first place.
Real Estate + Business = The Multiplier Move
Now, let’s add another layer: real estate.
One of the smartest plays in the acquisition game is buying a business that either owns or leases its location — and then structuring your deal so you own the real estate separately.
Let’s say you purchase a medical clinic that rents its space. You, personally or through a separate LLC, buy the building. Then, your new business leases the building from you.
Why does that matter?
Because this setup creates what we call a self-rental strategy — a legal, IRS-compliant way to funnel income into your real estate holding company. You get to depreciate the building, while also deducting rent from the business side. That’s a double win. And since the IRS treats rental income differently, especially when properly structured, this opens the door for passive income treatment, estate planning, and further asset protection.
You don’t get these benefits when you build from scratch in a co-working space or rent a storefront with no equity upside.
It’s Not Just About Taxes — It’s a Growth Strategy
Buying a business doesn’t just make tax sense. It’s a serious growth strategy.
If you’ve been grinding for years and feel stuck — maybe you’ve hit a ceiling with your client roster, your niche, or your marketing — consider acquisition as a growth play. Whether it’s a competitor, a vendor, or a business in an adjacent industry, you can absorb their operations and double your revenue in a single move.
Want an example?
I recently worked with a client who ran a successful pest control business in Georgia. They had solid systems, a good crew, but were boxed into their market. Instead of throwing more money at Facebook ads, they bought a smaller pest control company two towns over — along with its trucks, equipment, and recurring contracts.
We structured the deal with a stock purchase for continuity, and allocated the purchase price across equipment, customer lists, and a non-compete. That setup allowed us to immediately depreciate a large portion of the acquisition and reduce their tax liability by nearly $70,000 in the first year.
Even better? The new location is already cash-flowing, and they’re using the profits to fund a real estate deal for a new operations hub. That’s what I call stacking wins.
Buying Doesn’t Mean Breaking the Bank
Now, you might be thinking:
“Sure, Chris — this all sounds great, but I don’t have half a million dollars lying around.”
Totally fair. But here’s the thing: you don’t need to buy a Fortune 500 company.
There are thousands of small businesses across the country that are profitable, owner-operated, and looking for a successor. Baby boomers are retiring at a record pace, and many of them would rather hand their business to someone like you than shutting it down. Truth be told, many might just simply want to retire.
You can often finance the deal through an SBA loan, seller financing, or even creative deal structures like earn-outs. And because the business is already generating income, you’re not draining your cash reserves while you wait for traction. The business pays for itself.
What to Look for Before You Buy
Of course, not all businesses are created equal. The best deals typically:
- Have repeatable revenue, not just one-off projects
- Come with solid books and records
- Include depreciable assets and possibly real estate
- Have an owner who’s ready to retire or move on
And you’ll need a good accountant, a sharp attorney, and a banker who understands small business acquisitions — because structuring the deal right is half the game.
Don’t let that intimidate you. The same way people spend months tweaking websites and testing offers, you can spend time learning how to value a business and talk to sellers. The upside is just… bigger.
How to Make It Work for You
If you’re a business owner now, think about this: what if your next big leap wasn’t scaling harder — but buying smarter?
If you’re W-2 right now and dreaming of business ownership, consider buying a profitable company before you take a shot in the dark on a startup.
And if you already own a business and are looking for tax savings, growth, or even an exit strategy years down the line — start looking at acquisition as a tool, not just a dream.
When combined with smart tax planning — including FF&E depreciation, real estate ownership, and proper entity structuring — buying a business isn’t just a transaction.
It’s a strategy. feel free to call me and discuss your next purchase.
Welcome to the New Age of Accounting. Let’s begin.
Chris is the Managing Partner at Weston Tax Associates, a best-selling author, and a renowned tax strategist. With over 20 years of expertise in tax and corporate finance, he simplifies complex tax concepts into actionable strategies that drive business growth. Originally from Sweden, he now lives in Florida with his wife and two sons.
