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Start a Business?  Buy a Business?

Congratulations!  You’ve come to the point in life that you no longer want to be an employee.  No longer want to trade your time for a little bit of money.  So incredibly frustrated and you know you want off the hamster wheel of life. 

It’s time to do something!!

The question then becomes:  what’s next?  Do I want to start a business or buy a business?

You know that you want to be “in business”.  So, what direction should you go?

For a vast majority of new entrepreneurs, the default answer is “start a business”.   You think of all the people you know (really people you’ve heard about) that started a business and made a fortune.  Bill Gates.  Elon Musk.  Michael Dell.  Mark Zuckerberg.

Yet for every success story are thousands of failures.

The fact is that 90-95% of new businesses will be OUT OF BUSINESS in five years. 

And the 5-10% that “make it”, in only a fraction of those does the owner have the financial freedom that all entrepreneurs want.

The “financial freedom” probabilities are probably in the 2% range.

Looking at the failure rate, why would anyone want to go there?

Look at it this way:

A start-up won’t pay you a salary.

A start-up won’t give you health insurance.

A start-up won’t give you a 401(K).

 

For most start-ups, the founder doesn’t make a real salary for 1-2 years, if they are lucky enough to survive that long.

There is another alternative – BUY A BUSINESS.

Let’s start with the basics:  If you buy a business, you have a salary, probably have health insurance and possibly have a 401(K).

So, from day #1 you’re better off.

But you say, “I don’t have the money to buy a business”!!

Lots of business can be purchased with no money down. 

Real simple example.  The owner of a business has a health issue and needs out.  The owner doesn’t want to close the business.  There’s a good chance you can buy that business and give the seller a promissory note for the purchase price.  You operate the business and pay for it over five years at an interest rate of 5%. 

The only money out of pocket would be to pay for a lawyer to draw up the paperwork and even then, the business reimburses you for the cost after you close.

A couple of years ago I purchased a business with $30 million in revenue for no money down. 

It can be done.

Can any business be acquired with no money?  No, of course not.

But lots of businesses have assets that can be used as collateral for a loan.  That collateral plus a sellers note often can get a transaction closed.

And if you do have some money that could be used, so much the better. 

SBA financing generally requires 10-20% down and if land is included, repayment terms can be up to 25 years!!

There are a lot of ways to complete a transaction without writing a check for the purchase price. 

If you’d like to discuss and work with me, click on this link, fill out the application and let’s set a time to talk.  No cost for the call.  No obligation.  When you’re ready to change your life, let’s talk.