It’s a general concept that you need money to own a business. Without capital you can’t have your own business. But capitals come in different forms. Money is not the only capital. That is where creativity comes in. With the right strategy and resources you can acquire businesses without dropping a large sum of cash in the business. So yes, purchasing a business without money is possible but you have to look for the alternatives. We will explore those avenues here in the articles.

Seller Financing Opportunities

If you don’t possess a large sum of cash you can choose this method. You can slowly buy the business out in installment of payments. This way you don’t have to pay upfront for acquiring the business. But this will give you access to the business and the seller will receive interest from the amount given. 

Building trust with the seller to showcase your resolve is the best way to do this type of deal. Always set terms upfront. Aim for favorable conditions with lower interest and flexible payment schedule.

Sweat Equity Deals

This term is the process of getting ownership or co ownership of a business by contributing your time and expertise to the business. Instead of getting paid wages you get a share of the business in exchange for your valuable skills. This situation is most seen in small scale businesses. Small business owners tend to bring people onboard with the promise of big paydays if their ventures succeed.

Let’s look at a scenario. Suppose you are an expert marketer. You can help a struggling business without receiving any payment. But you get a percentage of the business if you boost the profit of the business. Of course make sure there is a legally binding agreement in order to avoid unforeseeable future circumstances.

Find an Investor or Partner

If you just have a business idea that you think will pay off and you can implement them but you don’t have the necessary fund, then finding an investor or a partner that will give you capital is a way to have a business without spending a dime. The investors or the partners will keep the cash flow to the business while you manage the business. In turn the investors will receive a percentage of the profit your business makes.

There are a variety of investors:

• Angel investors
• Venture Capitalists
• Family or Friends

By building your business on a solid foundation you can easily get help from various investors. Make sure to lay out plans to get maximum profit to draw in more investors.

Leveraged Buyouts

This essentially means you get loans from lenders to buy a business. But instead of paying interest out of your pocket you get to pay the interest on the borrowed amount with the profit of your business. This way you don’t have to invest in any business and the profit from the business will pay for itself.

If you want to acquire a business first you should assess the value of the assets that business possesses. It’s better to consult with lenders that specialize in the field of business acquisition and finance. This method is the most suitable with businesses that have high cash flow and valuable assets.

Networking and Creative Solutions

There is a saying – Your network is your net worth. So it’s important to have a vast network. You never know when an opportunity will present itself. With networking you get to connect with people that want to start business. You get close ties with business groups and entrepreneurs to discover deals. You might get the opportunity to get a stake in an acquaintance’s business by solving a problem for them. This way you don’t have to spend money to get a portion of a business.

The idea of buying a business without money can seem unrealistic but it is possible. You just need the right opportunity. It’s entirely possible to own a business without a huge cash upfront. From sweat deals to networking there are various ways to buy into a business. By researching and negotiating deals you can also own a business without spending cash.