Unlocking Value: What Best Practices Do We Need for Investing in Main Street Businesses?

While many startups struggle to deliver positive returns, a study conducted in 2022 by Stanford's Graduate School of Business shows that search funds, an investment model focused on acquiring and operating small businesses achieved a 35.3 percent pre tax return for investors as compared to the 10% average annual return from the S & P 500. In my perspective, this highlights how Main Street businesses may offer returns equal to or greater than those from tech startups or the broader market. That said, even with strong potential, success in this asset class depends on thoughtful evaluation of what drives a business's value and performance. Read more of my best practices when investing in Main Street businesses. https://www.forbes.com/councils/forbesbusinesscouncil/2024/11/27/best-practices-when-investing-in-main-street-businesses/