I see a lot of you getting hung up on the cash part of buying a business. The myth is that you need a huge bank loan or a suitcase of cash to even get in the game. That’s just not true.
The real currency in this game is creative problem-solving.
Think about it from the seller's perspective. They’re not just selling a business; they’re trying to solve a problem.
Maybe they’re tired, maybe they’re stressed by debt, or maybe they just don't know who to trust to take over their legacy.
When you can't bring cash to the table, you bring solutions.
Here's your playbook:
-Solve their cash flow problem with Seller Financing. Instead of a lump sum, you offer a steady stream of income over time. It's less risky for you and provides long-term security for them.
-Solve their risk problem with Performance Earn-Outs. You pay them based on the growth you create. It tells them you believe in the business and you're willing to bet on yourself.
-Solve their talent problem with an Equity Swap. You exchange your unique skills—your marketing expertise, your operational know-how, your network—for a stake in the business.
-Solve their debt problem with a Debt Assumption. You take over their loans, immediately relieving them of a major burden.
Your value isn't tied to your bank account. It's tied to your ability to create a solution.
Question for the group:
If you had to go into a meeting with an owner tomorrow with zero cash, what's a non-financial problem you could help them solve?
Let's hear your best ideas below.