Flip That Business!

Now that the real estate market has tanked, it’s much more difficult to flip a house. There are, however, a select group of “flippers” that are making money despite the real estate slump. What’s their secret? They aren’t flipping houses, they are flipping businesses.

These Bizz Flippers (named coined by the company BizzFlip) are taking advantage of the relatively untapped marketplace of buying and selling existing businesses. How are they making money? They are using the same basic principals that apply to flipping a house. They buy a business, make improvements and renovations, and then sell the business for a profit.

There are two significant differences here between flipping a house and flipping a business. The first is that it takes more work and more business experience to run and then flip a business. That seems obvious. The second, and what makes it so appealing to people, is that during the interim of the flip there is an opportunity to make money from the business itself. In contrast, during the interim of a house flip you run the risk of falling into the red. Bizz Flippers are effectively decreasing the risk involved with their investment. 

It’s hard to say, but it certainly seems fathomable that sometime in the future we will see a spike in this. Who knows, next time you turn on the television you might see that Flip That Bizz has replaced Flip That House.

Photo via Housing Doom.

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