If youve ever wanted to buy a business with no money down, and have heard someone say it goes on all the time and that its possible, then I have some good news and some bad news.
The bad news first: No matter what anyone says, you cant buy a decent business with nothing down.
In the 50 plus years Ive been in business, buying businesses and teaching other people how to buy businesses, Ive never seen it happen. I've never once run into a seller that will let you in with nothing down. It just doesnt exist.
But heres the good news: Just because you cant buy a business with nothing down, if you find one that makes sense and its large enough, you can finance it 100%, without using even a penny of your own money or borrowing a dime from your friends, family and relatives.
How can I say this?
Because there are, in fact, lots of ways to finance a business - including banks, government loans, joint ventures, suppliers, owner financing and, my personal favorite, investors. You can use one of these methods or combine them however you like. Most of these tactics are relatively fast, simple and clean...and a lot easier than you may think.
When I was still teaching about buying businesses in seminars many years ago, people would often confuse 100% financing with nothing down. But they arent the same thing at all.
The next time someone says you can buy a decent business -- one that's not a dog, a turn around or some kind of Mickey Mouse operation that's sinking fast -- with nothing down, run away from them as fast as you can. Because chances are theyre trying to sell you on an idea that simply doesn't exist. |
