No Money? No Problem! How To Buy A Good Business Without Using Your Own Money
If you had a pile of money available to buy a business - would you? If you are an ambitious person looking to create something of you own and had a desire to take control of you own financial...If you had a pile of money available to buy a business - would you?
If you are an ambitious person looking to create something of you own and had a desire to take control of you own financial destiny; I believe you might consider doing that.
Where 's the pile of money? You might ask.
Well, it's out there . . and more of it than you may be aware of. I received the following in an email, as part of their monthly newsletter, from one of my funding resources for buying businesses:
"When opportunity knocks, we deliver"- $300,000 Acquisition Financing
A buyer recently had an opportunity to acquire a target company that had products and manufacturing expertise as well as a strong backlog and a loyal customer base.
We provided a $100,000 term loan together with a financing package to generate the $300,000 purchase price.
The owner of the acquired company realized maximum value, and our client added much needed sales volume in this competitive market.
A win for all parties involved.
Notice anything in what they said? The buyer did not put up any money of their own!
From small deals to large, there are ways to structure them to enable buyers to buy companies without having a lot, or even any of their own money to put into the transaction. Businesses are bought and sold this way every day! You just have to know how.
There are many funding sources, just like the one above, available to support buyers that follow what we teach in our course. We list many of them in our course and teach you how to find hundreds more.
If you read my article, "You Can Buy A Good Business Without Using Your Own Money!", you know that 90% of people interested in buying a business never do.
Some spend months of time and effort only to never achieve what they set out to accomplish. In fact according, to industry statistics, they spend on average an 18 month period "looking" for a business to buy.
Why would anyone spend time and effort over that long of a period and still not produce a result?
I have dealt with hundreds of business buyers and business owners in my career and in my previous email I cited a lack of knowledge as being the answer to that question.
I want to add to that answer something else that is important. Preparation. Knowledge is a good starting point but you have to plan and prepare how to apply it. Most people interested in buying a business don't approach their effort in this way and that is why they spend a lot of time not getting done what they set out to do.
Here is an iron-clad absolute truth:
A buyer equipped with the right knowledge, preparation and plan will succeed where 90% fail.
What kind of knowledge does a buyer need?
* How to find the right business to buy (the absolute best way to use the internet for your research)
* How to analyze them (what to look for, how to judge what to work on and what to avoid)
* How to structure the deal (the secrets of sophisticated buyers who have made fortunes buying businesses)
* How to finance the deal (uncovering the money pile)
* How to negotiate the deal (approach this the way professional negotiators do- don't worry, its a very simple concept to apply)
* How to conduct your due diligence (including a check list of VERY IMPORTANT questions you must ask and get answers to)
* How to close the deal (getting your deal over the finish line is the goal, this will help you get it done)
* Important actions to take and procedures you need to manage the business effectively (you can't overlook this aspect of the business- you want it to pay you and pay for itself VERY IMPORTANT)
* How to establish your own exit-strategy (you've bought the business! Congratulations, but don't neglect to plan for where you want to be, and what you want to do with the business 3, 4 or 5 years down the road - always have an exit plan)
So before you rush out to buy a business; get a knowledge base to work from. Use your favorite search engine and search for the following to help you develop that knowledge base:
- financing for LBO's
- funding for leveraged buy-outs
- asset based lenders
- commercial lenders
- financing to buy a business
- money to buy a business
- how to buy a good business without using your own money
- leveraged buy-outs
There is a lot of money available to help you buy a good business. But money is a tool; you need to know how to use it, have a plan for its use and then you can begin to uncover the many sources of money available out there for you to use to buy your own good, solid business.
Best wishes and good fortune to you (and fortune favors the prepared),
About The Author:
Since 1983 Dennis Lowery has started up, bought and sold a number of businesses; helped private and public companies grow and worked with private businesses going public; providing consulting services to over 352 clients. He is President of Adducent, Inc. and a Founding Partner of Wilshire Capital Funding Inc.