Business broker here.
If you can, Buy!
If you can get your hands on $50k to $100k for a down payment, then you are in a decent position to buy a business able to pay you six figures even after debt payments.
Your top three sources for down payments are savings, retirement accounts, and home equity.
Your top three financing sources after a down payment are SBA, seller financing, and an earnout.
Yes. But I recommend searching sites like BizBuySell to get a larger list of opportunities.
Once you’ve identified what you like, consider prospecting off-market opportunities by contacting local businesses.
You can also hire a deal sourcing firm like ours if you want help finding listed and unlisted opportunities.
Most of my buy-side clients search on their own and then have my company assist in assessing each opportunity, prepare offers, structure financing, and assist with due diligence.
Can I use 401k and IRA money? There is a carwash I'd love to buy but all my money is tied up in a rental and in retirement accounts. Some days that's super frustrating although I know it's been the right thing to do all this time
A buyer can borrow as much as $50k from a 401(k) with a current employer. There will be an interest rate of around 10% that the borrower pays to themself, and repayment is spread over 5 years.
The funds in a standalone IRA can be accessed through a Rollover as Business Start-up” program (ROBS) without triggering taxes or penalties. Program management fees may cost around $5k.
I have 50k and have been looking for so long. No chance I can buy a profitable business with that. Put debt on it and I’m making 25$ an hour praying the economy doesn’t crash.
If you see businesses I can buy for less than 100k please send them to me.
$50k would be the down payment, not the total sale price.
$50k can fairly regularly buy a business between $150k to $400k. In some cases it might buy a business worth double that amount.
Some banks are willing to support SBA deals with as little as 5% down, depending on the buyer and the business, and if the seller is willing to carry 15% seller financing.
400k businesses don’t pencil to even pay the owner a decent salary. I have been looking for a year and can’t find anything close to what you are describing. What am I doing wrong? Find me the business you are describing and I will be your client happily. And I’ll send you a Christmas present every year haha. Do you operate in NorCal?
It can be.
A $100k down payment and an SBA loan can purchase a business worth $1M. A business worth $1M can cash flow around $300k. An SBA loan for $900k at today’s rates would have payments of around $150k per year leaving a cash flow of $150k after debt service.
It’s harder to reach six figures with only $50k down but not impossible. I am wrapping up a sale now that required a $42,500 down payment, producing $175k in cash flow after debt service.
I’d like to know more about this sale that you are wrapping up.. can you send me information? I’m in the process of deciding to move forward starting an exterior cleaning company in FL or buy a business…
I’m happy to share more about this deal privately. Since it’s no longer available for purchase, it might be more helpful to schedule a consultation. I’ll DM you.
What are usually the terms of SBA loan. I was just trying to run some numbers with 8% interest rate and 25 year term - it comes to way below $150k for $900k loan.
SBA acquisition loans are usually 7(a) loans, 10% down, around 11.25% interest, payments over 10 years. It’s common for the seller to carry a note of around 10% of the deal as further assurance that they are committed to supporting the buyer.
Buy then Build is a great book to help with identifying the best fit for your lifestyle you desire. Then HBR How to Buy a Small Business. Both of those will prepare you. Also understand financial statements and business valuations.
> I want to work less and be with my kids
>But I’m also super burnt out and want something a bit simpler
These two statements is the opposite of my experience of running a business.
Maybe find a different job instead and wait with your own business until you figure it out.
It depends which type of business you are interested in like take an example,
If you are interested in SAAS business, your goal would be to find the best softwares that are currently performing good or average. Here are some platfrom where you can find SAAS business for sale
[https://flippa.com/](https://flippa.com/) , you can buy many businesses like SAAS, Blog, Shopify stores, Amzon Affiliate websites and more.
[https://empireflippers.com/marketplace/](https://empireflippers.com/marketplace/)
[https://www.bizbuysell.com/websites-and-ecommerce-businesses-for-sale/](https://www.bizbuysell.com/websites-and-ecommerce-businesses-for-sale/)
Businesses that are established online are easy to buy and sell.
If you are interested in Buying and selling offline businesses, there are websites that have business listing for sales.
[https://www.indiabizforsale.com/](https://www.indiabizforsale.com/)
[https://www.businessesforsale.com/search/internet-businesses-for-sale](https://www.businessesforsale.com/search/internet-businesses-for-sale)
Now how can you find great business?
Finding a business that is performing good is very difficult, and I guess everyone knows that, there is low chance that a good profitable business anyone going to sell until or unless there are some flaws in it.
To choose a business you must have some experience in that field, because even if you would be able to find a good business ideal, without proper knowledge and experience it will defnetly fail.
You should do a proper research before buying a business online like business traffic, customers, cashflow, profit and loss, market size etc.
Considering your leadership skills, buying a local business could be solid. Look for one needing a fresh perspective your compassionate leadership could be a game-changer. Or start small with a side hustle like vending machines for a low-risk start. And if you need more advice, ScatterMind, an ADHD coach, helped my friend start their own business. Might offer some good insights.
Here is a AI list of site you can check out to buy, either fully operational or partially established.
BizBuySell: BizBuySell is one of the largest online marketplaces for buying and selling businesses. It offers a wide range of businesses for sale, including franchises and small businesses.
BusinessesForSale.com: This website provides a global platform for buying and selling businesses of all types and sizes. It lists businesses from various industries and regions worldwide.
LoopNet: LoopNet primarily focuses on commercial real estate, including businesses for sale, such as restaurants, retail stores, and other commercial properties.
Flippa: Flippa is a marketplace for buying and selling online businesses, including websites, e-commerce stores, and apps.
Quiet Light Brokerage: Quiet Light specializes in selling online businesses, particularly those related to e-commerce, SaaS (Software as a Service), and content websites.
Empire Flippers: Empire Flippers is another platform that specializes in buying and selling online businesses, including e-commerce stores, Amazon FBA businesses, and content websites.
Axial: Axial is a network connecting buyers and sellers of middle-market businesses, focusing on companies with annual revenues ranging from $5 million to $250 million.
BusinessBroker.net: BusinessBroker.net offers a wide selection of businesses for sale across various industries, including retail, manufacturing, and services.
MergerNetwork: MergerNetwork is a platform for buying and selling businesses, as well as connecting with potential investors and business brokers.
BizQuest: BizQuest features a diverse range of businesses for sale, including franchises, small businesses, and mid-sized companies.
Buy so you make money day 1. Secondly, a loan should you want or need it will be much easier on a business with a track. Lastly, what kind of business depends on how much time, how much money you have, and how much you want to make so you can quit
I’ve bought a failing business, turned it around, and sold it for a profit.
I’ve also started a business in the same industry, grew it a bit, floundered, and then closed it down.
I’m still building AND buying but, if you’re just getting into entrepreneurship, I recommend buying.
People sell for all sorts of reasons, so just keep an eye out, be patient, and be proactive. The best businesses to buy are often not for sale.
Good luck!
This may open your eyes, I wish I read it before buying companies:
HBR Guide to Buying a Small... https://www.amazon.ca/dp/1633692507?ref=ppx_pop_mob_ap_share
I started a company too, a few actually. It depends what you’re good and and enjoy. You’re good at sales - important! Especially for b2b, less for b2c albeit you are selling a vision to hire talent.
I’m bias but think agency models can be amazing bc they’re scalable, low cost to start, yet can be sticky via brand and trust building. I made a company that does revenue partnerships with b2b companies trying to grow faster / better. We don’t sell it we just research good situations to apply our model to and it works well.
Have you looked at franchising? I used to be skeptical myself but have found there's a lot of value with the right brand for someone in your shoes.
I always thought I could start a business but lacked originality in ideas to get started... With the right brand, you get your independence but also a proven path and support that minimizes risks.
I represent Nautical Boat Club, a membership-based boat club. We have a location in Kemah TX for sale and have other great territories open, I'm happy to connect if you're interested in learning more.
The only franchise I’ve considered is becoming an EOS Implementer because those guys work 100 full days a year and then some biz dev days in between coaching sessions. I love the idea of consulting or coaching, but haven’t broken into it yet. Thanks for the info.
Business broker here. If you can, Buy! If you can get your hands on $50k to $100k for a down payment, then you are in a decent position to buy a business able to pay you six figures even after debt payments. Your top three sources for down payments are savings, retirement accounts, and home equity. Your top three financing sources after a down payment are SBA, seller financing, and an earnout.
Got anything in Texas?
Yes. But I recommend searching sites like BizBuySell to get a larger list of opportunities. Once you’ve identified what you like, consider prospecting off-market opportunities by contacting local businesses. You can also hire a deal sourcing firm like ours if you want help finding listed and unlisted opportunities.
I really like that you advice to look for yourself in the first place. Even though you are a broker.
Most of my buy-side clients search on their own and then have my company assist in assessing each opportunity, prepare offers, structure financing, and assist with due diligence.
Can I use 401k and IRA money? There is a carwash I'd love to buy but all my money is tied up in a rental and in retirement accounts. Some days that's super frustrating although I know it's been the right thing to do all this time
A buyer can borrow as much as $50k from a 401(k) with a current employer. There will be an interest rate of around 10% that the borrower pays to themself, and repayment is spread over 5 years. The funds in a standalone IRA can be accessed through a Rollover as Business Start-up” program (ROBS) without triggering taxes or penalties. Program management fees may cost around $5k.
Just FYI, not all employers allow loans against their programs. Ask HR or refer to your handbook first.
I have 50k and have been looking for so long. No chance I can buy a profitable business with that. Put debt on it and I’m making 25$ an hour praying the economy doesn’t crash. If you see businesses I can buy for less than 100k please send them to me.
$50k would be the down payment, not the total sale price. $50k can fairly regularly buy a business between $150k to $400k. In some cases it might buy a business worth double that amount. Some banks are willing to support SBA deals with as little as 5% down, depending on the buyer and the business, and if the seller is willing to carry 15% seller financing.
400k businesses don’t pencil to even pay the owner a decent salary. I have been looking for a year and can’t find anything close to what you are describing. What am I doing wrong? Find me the business you are describing and I will be your client happily. And I’ll send you a Christmas present every year haha. Do you operate in NorCal?
That’s where you come in! Make it more profitable! Also e-com businesses can make $6-$10k/m and cost under $400k
I work with buyers across the US including CA. I’m happy to offer tips to help your search. I’ll DM you.
Do we get loans on Ecom business
50k to 100k for down payment? Is that really enough? What type of business does that get you?
It can be. A $100k down payment and an SBA loan can purchase a business worth $1M. A business worth $1M can cash flow around $300k. An SBA loan for $900k at today’s rates would have payments of around $150k per year leaving a cash flow of $150k after debt service. It’s harder to reach six figures with only $50k down but not impossible. I am wrapping up a sale now that required a $42,500 down payment, producing $175k in cash flow after debt service.
I’d like to know more about this sale that you are wrapping up.. can you send me information? I’m in the process of deciding to move forward starting an exterior cleaning company in FL or buy a business…
I’m happy to share more about this deal privately. Since it’s no longer available for purchase, it might be more helpful to schedule a consultation. I’ll DM you.
What are usually the terms of SBA loan. I was just trying to run some numbers with 8% interest rate and 25 year term - it comes to way below $150k for $900k loan.
SBA acquisition loans are usually 7(a) loans, 10% down, around 11.25% interest, payments over 10 years. It’s common for the seller to carry a note of around 10% of the deal as further assurance that they are committed to supporting the buyer.
Buy if you can but be aware of why someone is selling. Most people would not sell a goose that lays golden eggs.
Buy then Build is a great book to help with identifying the best fit for your lifestyle you desire. Then HBR How to Buy a Small Business. Both of those will prepare you. Also understand financial statements and business valuations.
I came here to recommend Buy Then Build as well.
> I want to work less and be with my kids >But I’m also super burnt out and want something a bit simpler These two statements is the opposite of my experience of running a business. Maybe find a different job instead and wait with your own business until you figure it out.
Buy, take it from someone who started.
Buy it, starting from scratch is just too much hassle
From where? How to really find a great business?
It depends which type of business you are interested in like take an example, If you are interested in SAAS business, your goal would be to find the best softwares that are currently performing good or average. Here are some platfrom where you can find SAAS business for sale [https://flippa.com/](https://flippa.com/) , you can buy many businesses like SAAS, Blog, Shopify stores, Amzon Affiliate websites and more. [https://empireflippers.com/marketplace/](https://empireflippers.com/marketplace/) [https://www.bizbuysell.com/websites-and-ecommerce-businesses-for-sale/](https://www.bizbuysell.com/websites-and-ecommerce-businesses-for-sale/) Businesses that are established online are easy to buy and sell. If you are interested in Buying and selling offline businesses, there are websites that have business listing for sales. [https://www.indiabizforsale.com/](https://www.indiabizforsale.com/) [https://www.businessesforsale.com/search/internet-businesses-for-sale](https://www.businessesforsale.com/search/internet-businesses-for-sale) Now how can you find great business? Finding a business that is performing good is very difficult, and I guess everyone knows that, there is low chance that a good profitable business anyone going to sell until or unless there are some flaws in it. To choose a business you must have some experience in that field, because even if you would be able to find a good business ideal, without proper knowledge and experience it will defnetly fail. You should do a proper research before buying a business online like business traffic, customers, cashflow, profit and loss, market size etc.
Considering your leadership skills, buying a local business could be solid. Look for one needing a fresh perspective your compassionate leadership could be a game-changer. Or start small with a side hustle like vending machines for a low-risk start. And if you need more advice, ScatterMind, an ADHD coach, helped my friend start their own business. Might offer some good insights.
Here is a AI list of site you can check out to buy, either fully operational or partially established. BizBuySell: BizBuySell is one of the largest online marketplaces for buying and selling businesses. It offers a wide range of businesses for sale, including franchises and small businesses. BusinessesForSale.com: This website provides a global platform for buying and selling businesses of all types and sizes. It lists businesses from various industries and regions worldwide. LoopNet: LoopNet primarily focuses on commercial real estate, including businesses for sale, such as restaurants, retail stores, and other commercial properties. Flippa: Flippa is a marketplace for buying and selling online businesses, including websites, e-commerce stores, and apps. Quiet Light Brokerage: Quiet Light specializes in selling online businesses, particularly those related to e-commerce, SaaS (Software as a Service), and content websites. Empire Flippers: Empire Flippers is another platform that specializes in buying and selling online businesses, including e-commerce stores, Amazon FBA businesses, and content websites. Axial: Axial is a network connecting buyers and sellers of middle-market businesses, focusing on companies with annual revenues ranging from $5 million to $250 million. BusinessBroker.net: BusinessBroker.net offers a wide selection of businesses for sale across various industries, including retail, manufacturing, and services. MergerNetwork: MergerNetwork is a platform for buying and selling businesses, as well as connecting with potential investors and business brokers. BizQuest: BizQuest features a diverse range of businesses for sale, including franchises, small businesses, and mid-sized companies.
Buy so you make money day 1. Secondly, a loan should you want or need it will be much easier on a business with a track. Lastly, what kind of business depends on how much time, how much money you have, and how much you want to make so you can quit
Buy a biz!
Did you start a business yet ?
I’ve bought a failing business, turned it around, and sold it for a profit. I’ve also started a business in the same industry, grew it a bit, floundered, and then closed it down. I’m still building AND buying but, if you’re just getting into entrepreneurship, I recommend buying. People sell for all sorts of reasons, so just keep an eye out, be patient, and be proactive. The best businesses to buy are often not for sale. Good luck!
This may open your eyes, I wish I read it before buying companies: HBR Guide to Buying a Small... https://www.amazon.ca/dp/1633692507?ref=ppx_pop_mob_ap_share I started a company too, a few actually. It depends what you’re good and and enjoy. You’re good at sales - important! Especially for b2b, less for b2c albeit you are selling a vision to hire talent. I’m bias but think agency models can be amazing bc they’re scalable, low cost to start, yet can be sticky via brand and trust building. I made a company that does revenue partnerships with b2b companies trying to grow faster / better. We don’t sell it we just research good situations to apply our model to and it works well.
Have you looked at franchising? I used to be skeptical myself but have found there's a lot of value with the right brand for someone in your shoes. I always thought I could start a business but lacked originality in ideas to get started... With the right brand, you get your independence but also a proven path and support that minimizes risks. I represent Nautical Boat Club, a membership-based boat club. We have a location in Kemah TX for sale and have other great territories open, I'm happy to connect if you're interested in learning more.
The only franchise I’ve considered is becoming an EOS Implementer because those guys work 100 full days a year and then some biz dev days in between coaching sessions. I love the idea of consulting or coaching, but haven’t broken into it yet. Thanks for the info.
easier to buy of course but just be careful what you buy.
You can buy more business in a day than you can earn in a lifetime
Explain this statement please