It could be that you want to start a business. But starting from scratch will mean having to invest a lot of time, money, patience and will require luck. Perhaps you may be interested to purchase a business that already exists.
Related Post: How to Buy a Business
Why buy an existing business?
An existing business is likely to include established current sales, customer base and constant cash flow. But it also comes with a downside that you need to compensate the owner. This is for the value, effort and time added to the business over time. But what if you lack capital? Is it possible to buy a business with no money? Fortunately, there do exist several time-tested strategies. You can use them wisely to own an existing business without having to spend even a dime.
Tips on How To Buy a Business without investment
- Working for the organization: You can work along with the present owner who may be interested to retire soon or sell off his business. Most businesses do require their owner to manage it to function smoothly. Otherwise, it is likely to collapse. Such companies are generally sold off to their employees since they are aware of the functioning of the business. As a manager, you will have better knowledge of the pitfalls that surround your business.
- Clearing your credit card errors: Prepare yourself properly before approaching the business owner you are eager to purchase from. Find out your credit card rating and clean up the errors present in the report. You need to enjoy a high credit card score. It will show that you are responsible money-wise and are financially independent. Your resume should display your experience in this type of business you are eager to purchase.
- Identify a motivated seller: Try to identify a potential seller who may be eager to exit soon from his/her company. It could be someone running a business for over 6 months but without much revenue or customers. You can also find owners ready to retire soon and eager to get back the money paid in a few years rather than a lump sum amount. This can even be an organization, where a partner may have resigned or died, leaving the other to consider selling it off.
- Developing better relationships in the organization: Working as a manager, you may have built a good rapport with your employer, customers and staff members. If your employer is considering selling off the business, he is sure to approach you for the same. You can plan to purchase a business this way. Moreover, the seller will also not plan to launch another competing business. You can expect the owner to finance the whole or at least part of the purchase of this business. The process is referred to as owner loan. The other alternative is that the owner may consider selling part of the business for which you will pay from your monthly salary.
- Identify a non-performing business: There are companies that may not be making profits. Owners of such loss-making companies may consider selling it off. How to buy a business that belongs to this category? Such entrepreneurs may be interested in an acquisition offer as well as not take any upfront money. You need to manage such a business and make use of strategies to turn your fortune. In case, the business does not achieve success, you will only lose time and nothing else. It is a wonderful strategy if you consider doing local business.
Is it possible to buy a business with no money? Yes! You need to do some research, understand your abilities and requirements. Follow the above strategies to gain sure success.