Many people would love to own their own business but don’t have the necessary capital. Fortunately, you can purchase an existing business and achieve your dream without a huge bank balance. The key is to focus on your strengths and find creative financing options.
Start by identifying what type of business suits your skills and lifestyle goals. It can be difficult to succeed in a business you don’t know well, so it is important to choose one that fits your skill set and experience. Also consider the local market’s demand for the type of business you want to operate.
A good place to begin is by working with a local business broker or commercial real estate agent who can help you identify businesses for sale in your area. Once you have a list of potential candidates, take the time to learn about each business on your shortlist. Ask for an organizational chart to get a sense of the chain of command, flow of work and who holds accountability for important functions like sales, business development and accounting. Ask about legal issues, such as pending or threatened litigation, and review financial records to understand the business’s profitability.
Once you’ve done your research and are confident in the viability of the business, approach the seller with a proposal. Be prepared to explain why you believe you are a good fit and offer aggressive terms. For example, if the business has profitable revenue, you could offer to pay for half of the purchase price upfront and finance the rest over six to 12 months. How to buy a business with no money