Starting and establishing a successful business is not at all an easy task. It needs a lot of effort, money and time to found a profitable business and I know that it is tough to work hard with patience. That is why many people fail in starting a profitable business. So for them, it is best to buy a profitable running business.
But I know that very few people have funds, and many will never afford to buy a successful business. If you are one of them, you came to the right place because here we will discuss the best strategies you can easily buy a business with almost no money.
So much to know, a lot to discuss and without wasting time, let us begin with our blog post titled “ How to buy a business with almost no money?”.
Strategy to buy a business in no money
Follow the below-given strategy properly step by step if you want to buy a business with almost no money:
#1 Find a businessman in a hurry
First of all, you need to find a business that wants to sell its business in a hurry but without any financial emergency. He may want to sell his business because he may shift to another country, he may lose interest in that business for any reason.
You can easily save a lot of money by negotiating with that businessman as he is in a hurry, so he will definitely give you a good discount of about 20-25% from the actual net market value of the business.
But before buying it, make the proper calculation of its assets, liabilities and goodwill, which is necessary to check before buying a business.
#2 Make a deal of partial payment in instalment
Try to pay only 20-30% at the time of the deal and the rest in instalments. Although it is tough to convince a businessman to take payments in instalments, in this case, he is in a hurry, so you can persuade him by paying some extra amount as interest.
It is best to convince a businessman to sell his business in instalments with an interest rate of less than 6% per annum.
#3 Find a business partner
Since you do not have money to buy that business. So it is best to believe in partnership business. You need to find a partner who can instantly contribute a reasonable amount for his 50% share. Now that you are getting that business at a discount, you can quickly charge a premium from outsiders to become a partner in the industry.
In simple words, you need to find a person who can contribute 60% of the business buying amount for his 50% share, which you can quickly see because you are buying the business at a discounted price.
#4 Pay to vendor from the partner’s share
Now you have to pay the 20-30% amount or whatever agreed to by the vendor from the money you received from the partner. After that, invest some amount in your business and save the rest to pay the instalments.
You can easily manage 6 months instalments from the excess amount and afterwards follow the last step.
#5 Continue the profitable business
Now you just need to continue the profitable business and pay the rest of your earnings. Since the company is already good, you do not need to make an effort to earn money from it. You can use your profit share to pay the rest instalments to the vendor.
It will be tough for you to pay the rest instalments to the vendor on time. But since you have a good business source, the business you purchased, you can easily take a long-term bank loan for paying all the vendor’s leftover amount and afterwards quickly pay the bank loan in fewer interest instalments.
This is our working business plan of buying a profitable business with almost no money. Many of you may think that it involves a lot of risks and it is very difficult to find such a businessman and a business partner. But in the end, you need to remember that you can buy a business with almost no money with the above-mentioned strategy.
And after all, money-making is not an easy task, so you need to work hard with patience and dedication if you want to buy a business with almost no money.
Now it is time to end this article. If you have any doubt then feel free to ask in the comment section below. So with this note, Goodbye and as always “ God Bless You All”.
Frequently Asked Questions
How to buy a profitable business at a discount?
Simply find a businessman who wants to sell his business in a hurry to buy a profitable business at a discount.
How much money should I invest in a profitable business?
You should invest at least 5% of the purchase value when you buy a new profitable business.
Why should I pay the vendor in instalments?
You should pay the vendor in instalments because it will give you time, and after that you can arrange the money from the business to pay the installments.