Sunday, August 28, 2011

No Money? No Problem … Buy A Business With $0 Down


No Money? No Problem … Buy A Business With $0 Down

This question is Not Answered.

No Money? No Problem ... Buy A Business With Zero Down ($0 from your pocket)


I could tell you that there are many "little secrets" that sophisticated business buyers and investors keep to themselves to buy good businesses without using their own money and that now for the "first time" I'm going to disclose them to you ("at the risk of making them mad; but the world has to know" ... right ... what BS ... it always makes me smile when I read it.).


But it's not like that at all.




Most sophisticated and experienced business buyers and investors (and I've talked, worked and dealt with hundreds) are good people; professionals that have learned through experience and don't mind talking about it and sharing their knowledge.


The thing is, most people don't know someone like that, and if they don't know them ... how can they ask them about buying businesses and the best way to do it if you have a limited amount of capital?


There are a lot of good books out there on buying a business. They are a great resource for those people who have a lot of cash on hand to buy a business.


They are also great reference materials for those out there that want to buy a business but may not have the money to do it. But frankly it is not going to be much help to them since they do not have the money to buy a business the way that most people think is the only way to buy a business. But there are other ways and you can buy a good business without using your own money for the down-payment. This has been proven for decades time and time again!


In my previous posts I talked about why and how this works (please read them if you have not had a chance to yet):


5/22 - How to buy a good business without using your own money - Part 1 - Why This Works


5/22 - How to buy a good business without using your own money - Part 2 - How This Works


Most people think that they have to have a lot of their own money to buy a business.

That is just not true.

It does take money to buy a business but again we're talking about learning how to use other people's money ... not your own!

Perhaps you have another question like "I've heard that it is very hard to find money to start a business ... why would someone provide money for me to buy a business?"


Here's why:

  1. It is cheaper smarter safer and much faster to buy a good business rather than to start one.
  2. Established businesses have proven revenues and cash flow.
  3. They have existing customers and supplier relationships.
  4. The financial communities know that it is much safer for them to put money into an established business as compared to a start-up business.

The financial community that we mention above is familiar and comfortable in working with business people in leveraged transactions for solid established businesses.


They understand their business and what's more they are comfortable and understand the businesses of their clients. They know that asset-based transactions are a good investment for them and that historically they have worked well for many buyers who use their services (and capital) to buy businesses.

Keep in mind, as an example, if you buy a successful business for $1 million using other people's money; you own a significant asset that produces a regular income. It doesn't matter if you bought the business without using any of your own money. When the financing is paid off you will own a $1 million business asset free and clear.


Paid for by other people's money that is paid back from the cash flow of the business!

The business market favors the knowledgeable buyer!


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1 comment:

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