In this episode, Tim Delaney discusses the concept of buying a business with no money down, exploring various financing options such as seller financing, SBA loans, and partnerships. He emphasizes the importance of understanding the financial obligations tied to business purchases and provides insights into alternative payment structures like earn outs. Tim also highlights the necessity of ensuring that business profits can cover debt payments, offering a comprehensive overview for aspiring business buyers.
Key Takeaways - Buying a business with no money down is possible.
- Seller financing allows the seller to act as the bank.
- You can use existing business revenue to finance a purchase.
- SBA loans can help secure financing for business acquisitions.
- Partnerships can provide necessary capital for business purchases.
- Your personal assets can be leveraged for financing.
- Earn outs are a less common but viable payment structure.
- Understanding cash flow is crucial for managing debt.
- Profits must cover both interest and principal payments.
- Having some cash available can strengthen your position in negotiations.
Tim is an entrepreneur who believes everyone should explore the opportunities that business and real estate can provide on the path to financial freedom. He owns and operates a wine & liquor store, a software startup, a consulting company, and a growing portfolio of commercial and residential real estate.
For over a decade, Tim has worked with businesses on strategy, processes, finances, and marketing. Along the way, he has analyzed dozens of companies for acquisition, giving him a unique perspective on what makes a deal successful — and what pitfalls to avoid.
00:00 Introduction to Business Buying with No Money Down
03:17 Understanding Seller Financing
06:38 Exploring Financing Options: SBA and Bank Loans
09:29 Leveraging Partnerships for Business Acquisition
12:24 Alternative Payment Structures: Earn Outs and Performance Payments
15:12 Navigating Debt and Profitability in Business Purchases
Connect with Tim
Website: powerofbiz.com
YouTube: @powerofbiz
Instagram: @timtdelaney
Threads: @timtdelaney
LinkedIn: Timothy T. Delaney
Facebook: Tim T. Delaney
Tweetable Quotes
- "Buy a business with no money down." - Tim Delaney
- "Your sweat equity is worth something." - Tim Delaney
- "Make sure profits cover debt payments." - Tim Delaney
