The COVID-19 epidemic has already claimed over 10 million jobs in the United States. Some experts say the number might go as high as 25 to 30 million. If you’re one of many who have been considering acquiring your way into entrepreneurship, you might be surprised to learn that this might actually be a good time to do so.
While much of the focus on the CARES Act has surrounded the Paycheck Protection Program, there are other aspects of the congressional act that affect new acquisition loans:
- The SBA will pay 6 months of principal & interest from March 27th to September 7th
- Fees are waived during this time period
- Interest rates are capped at 4%
- Maximum loan amount is increased to $10MM
These incredible changes are designed to spark activity in the market. However, you might be thinking that it doesn’t matter how good the terms are if businesses are on the decline or closed. While it’s true that this crisis has devastated many businesses, some are not only surviving, they’re thriving. Many manufacturing companies not only continue to operate because they’re deemed “critical” by the federal government, but they’re also thriving and busier than ever.
There have always been pros and cons to exiting corporate America and acquiring your way into entrepreneurship. The one most often expressed con is the lack of security experienced when leaving the employment of a big corporation. Many are now finding out that their jobs aren’t as secure as they thought they were.
In contrast, some of the pros of business ownership are now more attractive than ever:
- You’re the only one who can fire you
- Your actions directly affect the outcome of your business and career
- You have a greater ability to help those around you
- You have the greatest flexibility and freedom to make decisions
- You’re not directed by the morals of others
Even with these pros, some in our society will never be cut out to be entrepreneurs. They can’t function without the structure of someone telling them what to do, and how and when to do it. They might not have the fortitude to withstand the emotional ups and downs that go with being an owner.
For those who are self-directed AND understand what it takes to build a great business, there may never be a better time than now for acquiring your way into entrepreneurship. Acquiring a solid manufacturing company with a cash flow that can cover or increase your current salary, as well as debt service, can place you a decade or more ahead of starting from scratch.