East Michigan News

Owning a business is a dream for many aspiring to be their own boss. Julie Messing, director of Central Michigan University’s Isabella Bank Institute for Entrepreneurship, shared insights on creative routes to business ownership and strategies for growth.

Messing emphasized that starting a new business is not the only path to becoming an entrepreneur. "Many people think of the new start-up venture when discussing how you can become a business owner," she said. While invigorating and rewarding, starting from scratch is not necessary. Acquiring an existing entity is another viable option. This can include outright acquisition, joining a family-owned business, or buying into a franchise.

Industries with numerous small or independent companies, such as independent restaurants or trades businesses, are often ripe for acquisition. Existing businesses provide avenues for funding due to established customer bases, sales records, expenses, employees, and assets. Lenders see less risk in businesses with proven track records.

Beyond traditional bank loans, leasing companies and industry-specific lenders can offer financial support. Partnerships with other entities or securing major customers before having significant sales are additional creative strategies entrepreneurs can employ.

Messing highlighted that risks are generally lower when acquiring franchises or family businesses compared to starting anew. Resources like trade publications on franchising and websites listing businesses for sale (e.g., BizBuySell or Michigan Business Brokers Association) provide valuable information on potential acquisitions.

Support resources such as the Small Business Development Center and the Michigan Employee Ownership Exchange also offer expert guidance.

Julie Messing's extensive background includes roles at Kent State University as founding director of the College of Business Administration's Center for Entrepreneurship and Business Innovation and co-founder of the Entrepreneurship Education Consortium. She also serves as president of Transitions Advisory Group, Inc., aiding businesses through organizational transitions.

Messing discussed these topics further on CMU’s podcast The Search Bar while addressing the future of businesses owned by retiring Baby Boomers.