How To Buy Businesses with No Money for a living - Is it Possible?

How To Buy Businesses with No Money for a living – Is it Possible?



yeah recording cool yeah let's do it so hey guys welcome to today's video today I'm going to share with you on this free training on how to buy businesses for a living I'm going to share with you why you even want to do this and the steps to do that I don't know how much this video is gonna tell you but I'm gonna free-for-all with you probably keep it for under 30 minutes so stick with me you're gonna learn a lot about this pace on how to buy existing established business I'm talking businesses doing at least a million in sales and I mean for most of you guys that's probably one deal that you need in order to become financially free most of you guys who start to be an entrepreneur I mean you try to start a business in order to get to a point where your own in a business doing at least seven figure in year in sales today I'm gonna show you how to go and buy existing one like that and I'm going to share with you why in my opinion it's so much better now just a second about me if you don't know me yet my name is Mohan pepper I've been involved in business for more than 10 years now over the last few years I've been involved in the space of buying businesses one of my most famous acquisition is an app company that I bought and turned around the app became one of the top 100 apps in the App Store and over the last year or two I helped hundreds of entrepreneurs buy probably close to 100 businesses like one of my guys about thirty two businesses I have a guy about three businesses in less than a year and I have many people who bought like one business here one business there the thing with buying businesses is that after you buy one business that pretty much can set you to become financially free so most people then need to make the decision do they want to step back and have the lifestyle and financial freedom or like one of my guys Dan ganzel he he just loved the idea of doing deals right so he went out there he he I think he's in his 32 or 33 deal already and that's kind of like where I am right now I just I'm just a deal junkie I want to do as many deals as possible some of them were in the process then I'm gonna share with you today some of them are shorter deals where you can literally have an amazing capital event within a few weeks but today I'm going to share with you the step-by-step process of how you can buy your first business or how if you have an existing business how to go out there and buy any in business and then grow your existing one by acquisitions and in my opinion that's the fastest way you can grow cuz there's only so much growth you can do organically by growing one client at a time by doing more sales more marketing and when you buy an existing business you can grow by hundreds of percentages in revenues pretty much in a matter of a day or two just from the moment of you signing the contract right obviously it's going to take you time together but when you're done with the deal I mean you just bought another seven-figure in revenues so let's get to the steps right so first of all before the steps why is that even important so first thing is time as you probably know if you start to start a business from scratch it's going to take you a long time to become successful right and unfortunately most startups fail I mean 96% of businesses fail in their first ten years and even those who make it report less than $50,000 in revenues so the time alone of you the time and money so let's talk about you know what let's talk about time money and leverage and can I combine those things before we talk about lifestyle because in the end of the day those are the things that people really want right when they get into business what people care about they care about their income they care about their lifestyle they care about impact I guess so when you start a business from scratch to get to a point where you're making money can take you a lot of time to just get one client like the work the hassle to get to a point where you're getting yourself one client can be really really difficult and for those of you is try to start a business on scratch you know how difficult that is to get a client and I'm not even talking about retaining that client right that's another conversation so in terms of time I can show you here in those steps on how you can buy an existing business literally at the same amount of time that it will take you to start to get the client you can just go and buy a business because the process is pretty similar it's pretty much a marketing process they I guess instead of you looking for one client you now just go out there and look for one business so instead of growing one client you grow one business's time so that's that's in terms of money in time in terms of money sorry when you when you want to start a business I know people who literally spend their life savings on trying to start a business I'm not even talking about the months it's taking them to get clients they're spending their life savings to to get to a point where they can grow their business and no one guarantee anything 90% will fail I don't care how much you're gonna invest of your own money into the business you still have 96% of failures so in terms of money and that's the reason why I suggest you to buy an existing business is that it's probably gonna cost you the same amount of money if not less to buy an existing established business with existing revenues profits employees customers brand recognition and you have less risk because you're getting yourself into something that's already established with existing assets and your chances of failing let's say if you were to go out there and buy a business that's already existing for ten years the chance of you failing with that business is much lower because it's something that's already established that's already existing for ten years it's pretty much skipped or you already hacked the startup phase because their startup phase is the first ten years but if you buy an existing business that's already existing for ten years you pretty much skip that steps by using money and leverage in time and let's come back to leverage because when you buy an existing business you can use its own assets to pay for the business so when you go and look for a business right you're looking for a business doing just a million in sales that business got assets on the balance you think like accounts receivables real estate cash equipment the inventory you can use those assets as a leverage to buy those businesses you can go to financial institutions and tell them hey look guys I want to buy this business obviously there's much more involved in the process and position yourself right but you can literally go to those institutions and tell them look guys I have this business that I want to buy and the chances of them loaning you money to buy that business it's much higher or like 90 100 cent higher then if you try to start a business from scratch go and try to raise capital from a financial institution when you have just an idea for a business right obviously you have venture capital firms and angel investors but they I mean it's it's so much more difficult to raise capital for a startup than it is to raise capital for something that's already established it's already existing right so this pretty much cover the leverage the time the money when you buy something existing you already have all those assets right and in terms of lifestyle most people that I know they start they get themselves into business to begin with at least to get more income in a more lifestyle right after that they've come that comes impact right when you want to add value to the board and all that and that's pretty much for most people they go into that mode after they already have the lifestyle and income now in terms of lifestyle I don't know anyone who started in this we have a nice lifestyle you pretty much need to work your ass off 24/7 to get to a point where you have anything and with buying an existing business the fact is that you already get yourself into something that's already existing with existing employees who can do the day-to-day work for you and then you can buy a business in an industry that you don't even know about because you have professional managers or can run the business for you will already run the business for the old employers right for the own old owner that you now going to replace so you can have the lifestyle from day one you can buy a business that's already have cash flows that can pay for salaries for other people who can manage the day-to-day which then allows you to step back and become what we call the owner investor which you're gonna get to in a bit so that's the beginning right so that's the why guys why why you should even buy an existing business versus starting it from scratch right because in my opinion that's the best thing you can do if you want to be an entrepreneur unfortunately most people don't know that it's even possible and just to give you a quick story about that just think about you if you want to buy you want a laptop right are you going out there and building a laptop from scratch are you buying the screen separately and the keyboard separately and then you try to combine everything together and build one from scratch or you just go to the app store and buy an existing laptop that someone already built for you and worst ears to create for you right what do you do you'll tell me hey and of course of course I'm buying an existing laptop that someone already built for me so if that's the case why everyone isn't doing the same in business why everyone out there try to create something from scratch I mean maybe you have this unique idea that no one ever thought about maybe you have the next face book in mind and the next artificial intelligence robot in mind that you want to create in that case I'll tell you you know what going start from scratch change the world and make an impact but if you just want the lifestyle and income from business why won't you go to buy something that's already existing already established and heck I mean look in the u.s. there are millions of baby boomers who want to retire every single day and they have what we call a boring business right I mean engineering businesses construction businesses manufacturing businesses and those baby boomers they don't know what to do with those businesses because they want to retire and they don't have anyone to give those businesses to because their children don't want anything to do with those businesses the reason for that is because those are boring businesses but those are the best businesses for people that you want to be in entrepreneur because they are established they already exist for sometimes 20 30 years and they're very stable because maybe they grow slow but they're stable the chances of them failing down I mean many times I think those businesses are more established and stable than real estate investments like seriously especially with what happens in the market so that's why I know that buying an existing business is so much more lucrative in terms of income in terms of lifestyle in terms of your impact even if you have a crazy idea I think you better just go and buy an existing business in that sector and bring your ideas into that sector that Sagi 16 business because you already have clients you can test your crazy ideas on right you already have someone you can work with instead of you starting everything from scratch and just hoping that you'll get there so that's that steps now how do we even do that that's the steps so criteria first of all what are our steps so first thing we need to do is pick a criteria what kind of business you want so how do you find the business that you want to buy right now when you understand hey it's much better to buy an existing business than it is to start from scratch I want to walk you through the steps real quick so you understand what you need to do next first of all you got to pick a criteria right figure out with yourself imagine yourself in a year from today what will be the ideal business for you to own what sector would that be how much money will you make from that business do you want to run the day-to-day of that business or do you ideally want to have someone running the day-to-day for you for me personally I don't want to run businesses day-to-day I like to be the strategy guy I like to be the one who's responsible for the vision I like to have big ideas I like to do negotiations on big deals I like the art of the deal I'm just like a deal junkie you can say so you gotta pick your criteria if you don't know what sector to pick just pick one and run with it I would say find a combination between your passion your expertise your context and experience use all those things pick something that can work for you and just run with it in the end of the day even if even if you don't know what sector to pick you're gonna learn more in few weeks of finding deals about that sector and business then most people who start businesses from scratch will learn in years and let me share with you why right so that's the current year figure out what kind of business you want not just in terms of I'll just add to that not just in terms of sector but also in terms of how much in revenues you want to make how much in profits you want to make how much money do you want to take for yourself each year in terms of salary or dividends or bonuses or obviously whatever income you want to make to be able to live your lifestyle some of you guys want to quit your job so maybe you want to tell her said hey you know what first business I want to buy business this can just pay me enough so I can quit my job and be a business owner and entrepreneur full-time some of you guys already have an existing business so maybe you care less about the money and you care more about the synergies and cross-selling opportunities with those businesses right so let's say you have an existing business doing social media marketing that I see many people try to start right now let's say you have a social media agency business right now what you can do is going by a complementary business to social media you can go and buy a business doing SEO and then you can have cross selling between customers you have a list of clients and services and the business that you just bought have a list of client clients and services you can then cross sell between services and customers and you can have a lot of cost savings so for example if you're in the same location your same city you don't need to office space as many times you can just combine them same with marketing departments or finance departments many times you don't need two accountants in your business so that alone can save you a lot of money and the beauty is if it's your second business that you're by now we're talking about every cost savings will go to the bottom line just your net profit which you can take home so for some of you guys when you buy a second business maybe you care less about the money and the profit that that second business is making maybe you care more about the assets that they have like a specific technology or a list of clients or like I said different services that they can offer that you don't so that's in terms of criteria we got that how to find deals right so finding deals right now we're in 2018 guys if you don't have to find those deals you got to be more resourceful obviously there are better ways than others but I mean we all know Google right if you really want it's going Google businesses for sale there are millions of results out there then you can just go and search for and am I saying that all of those businesses you can buy tomorrow obviously so what is more important here is having a set of filter that you can go through really fast when you find in those deals and the beauty with buying businesses is that you can learn more about a specific sector or a business in a few weeks of talking to business owners because think about it you're going to talk to business owners who are doing 10 20 million a year in sales potentially or even if it's a small business doing one to three million a year in sales and you will learn more about that business as a potential buyer then you will learn about anything they will share with you more about their business then they'll share with anyone else if you know how to position yourself right obviously and make them feel comfortable they will share you with you more about their business then they share with anyone else because they want to sell you on why you should buy their business they will open all of their books all of their systems and processes everything you can learn more about if you want to learn about a specific sector in the world of business go and give it a try for two weeks and position yourself as well as a buyer of the business and get access to their data you will learn things that's already working you will learn about the marketing processes that already working how their operations are working how their finance departments are working you can learn so much about business literally you can learn in few weeks just from talking to business owners as an investor as a business buyer then you will learn in few years from trying to start anything from scratch because then you just reinvent anything and sometimes just not working right so here finding deals and talking and having conversations can help you just learn a lot about business so that's about finding deals next things is about making offers right so obviously we need to talk to those business owners we then get in touch with them we want to get all of their information like we sell and then we want to get to a point where we can make offers on those businesses how do we make offers obviously it's kind of like similar to real estate we want to understand what's going on in your market and obviously every secretary is different but you want to understand what kind of offers or deals were made in your sector over the last year or two right and you eventually in the end of the day you want to make similar offers and some of them will accept your offer some of them not obviously some are more motivated to sell their businesses than others right so third thing is we want to make offers and the fourth thing is obviously capital so how do we pay for those businesses you're probably asking right so in the answer to that there are many many different ways to pay for your those businesses and there are many many ways to do deals for buying businesses and getting equity in businesses and you'll be surprised it's just one of them is cash I mean cash is just one way to pay for a business you can pay in value there are so many different ways to pay for a business in terms of value especially if you have an existing business it's so much more easier for you to go out there and literally get equity for free in different businesses because you have different value to offer when you present yourself as an investor bring in money to the table just one thing if you have if you can bring access in terms of resources time money like I said all those different assets that you can bring to the table can give you equity in those businesses and we have nine different ways where we close those deals so there's many many different ways to structure deals and negotiate deals let's keep things simple if you need access to capital there were thousands of financial institutions that their main focus to give you access give you money to do those acquisitions right just think about it's very similar to you buying real estate so when you're looking to buy a house many people don't buy their those houses with 100% of their own cash right they go out there to banks and they raise some of that capital they raise they have a mortgage to pay for those businesses and perhaps they need a small percentage to bring from home the beauty with business is that many time you don't even need that because you can ago sheet with the seller different terms like seller financing earn out and payments that are going to be paid over time using the business cash flow so that's the beauty in buying businesses you can pay the seller with his own business cash flow over time because that's business I mean that's a leveraged buyout word and if you if you don't think it's possible just go and check a book by the name of barbarian by the gates and that's a book about the acquisition of RJR nabisco which is a billion dollar acquisition and you're probably thinking hey maybe they probably had billions of dollars to buy that business well know they even pay a single dollar of their own pocket to buy that business and I'm talking about the billion dollar acquisition and we're talking about smaller businesses businesses doing 2 3 5 million in sales so trust me it's definitely doable here because especially with small businesses the owner of those businesses care less about the money they care more about taking care of their employees the psychology who they're selling their business to and the reported they had had with the business buyer which potential is going to be you so that's in terms of capital right now which leads us to owner investors obviously we made offers we know how to finance those deals and then after we do in our own to jail it due diligence and we were fine with everything we know hey you know what we made a deal it's all good we're becoming the owner and then it's about the decision do you want to be the owner investor or do you want to be the owner manager and obviously all of you guys are different for some of you guys if it's your first business maybe you wanna run those businesses day to day maybe you want to be the manager and that's ok you can run the business and be the owner manager or owner operator or owner employee right and you can be the CEO of business and bitter everyday running the business taking care of the employees and all that there's nothing wrong with that some of you guys might want to be the owner investor which is you want to own equity in a business but then you want to step back and get to a point where someone else is running the day-to-day for you and the ways that that work is basically obviously you now own a business that's already doing some revenues you can take some of that money and paid to someone that's already familiar with the sector and can belittle your professional manager who's running the day to day for you and then you can step back and be the investor and then it's up to you do you want to have the lifestyle and just chill and travel around the world and sit on the beach all day and drinking pina coladas you can do that if you want but trust me that's getting point over time but some of you need that you need to get it out of your system but then I know many people work with me after they're doing one pill they're like you know what man that's freaking awesome I love doing that let's do more deals and then you become an owner investor and you become a deal maker and all you care about is just doing more deals right doing more deals and it's up to you do you want to keep the business the deal that you bought you want to keep it as is to run for you and or do you want to maybe sell it fast and have kind of like a quick flip and have a nice capital event for yourself and I mean heck if you sell even just one of those businesses I mean that can be a few million dollars in cash in your bank account if you grow it and sell it after some time so that's about becoming owner investor or owner manager right and it's up to you what do you want do you want to be that or that either way and I think that's that's our goal in the end of the day right is the financial freedom part and for most of you guys one good deal one good business is all you need I mean for most of the people and when I'm talking about financial freedom it can be financial freedom and just freedom in general so let's let's give you two examples one of them is for people who already have businesses and the other one is for those who don't have businesses who maybe work for someone else so for those who have an existing business if you go out there and buy another business that's your best way to get your freedom back why because you can buy business with a manager in it who can take over your role your day-to-day role and then you can step back and have the right and just be the owner shareholder the investor so that's if it's your second business that you're looking to buy what we call the bolt on acquisition so if you already have an existing business go out there by business with someone who's already run in a similar business to yours and just tell them hey it's part of the deal I want you to run both of our businesses and I'm gonna step back right and it's all good and in terms of financial freedom again we're talking about businesses doing at least a million a year in sales for most of you guys that's all you need to become financially free to get you to a point where you're making enough money where you don't need to work anymore or I mean you can just like I said you can either hire people doing the day to day for you or you can step back and obviously in those type of businesses if the business is doing two or three million in sales there is enough money to hire someone and there's enough money for you to take home so you can make obviously pay for your expenses and leave in cost so that's about that guys and that's why I think I mean buying businesses for a living guys brings us all back to the title right I think that's the best way to build wealth to have the lifestyle to have the income unfortunately most people don't know about that that it's even possible and you don't need to get to you don't need to have millions of dollars in your bank account before you do that eventually all you need is just to be resourceful enough have the right strategy and ideally you have some accountability and support from people who already did that and I'm obviously happy to partner with with people on deals that's why I'm doing this I'm going to share my journey and document my journey I want to help others and I want to do more deals on the back end so I mean obviously I'm very transparent and honest about that and we all have our agenda right so that's it for today guys I hope I hope you enjoyed it if you want to learn more about that we probably want to put somewhere here below the video some more links to some more free training that I'm gonna do about that so we can get more into the details of each step but right now I hope this opens your eyes to what's possible and I hope you're gonna do it because I mean it's definitely changed my life the fact that knowing that you can even do that most people don't know it's even possible we all know about TV shows like shark tank or Dragons Den or the profit and we see people who are buying businesses but we don't know that we can do that before we're making millions of dollars and that's why I want to share with you here if you think this info someone else going to like it please share it with others and yet see the links like I said to the more training for me below this video other than that I really really hope that you enjoyed it let me know in the comments below what do you think and I'll see you soon

22 thoughts on “How To Buy Businesses with No Money for a living – Is it Possible?

  1. MORE MARKETING!!! Use dan Pena as keyword!! Give really true honest transparent information for free buy keep the EXTREMELY good stuff for members only!! Look at the program called justonedime.com Seth gives out SOSOSOSOSOS much FREE content to help people on YouTube but has a members only program that has made him millions and the stuff for free is good and can ACTUALLY get you started but he keep the good stuff the secret sauce inside the platform and all of us members are really secretive of that info because of how genuine he is!! I suggest this route brother vs your current model

  2. I keep hearing sba loans won’t let you be owner absentee. How can I work that strategy when I purchase businesses in different states

  3. Can you help me choose a deal please? I am manager for metroPCS (Metro by T-Mobile) Store. One of the busiest stores. I know a little about insurance, property & Casualty and life and health. Please help me

  4. I like how you want people to think differently. This is not a joke to build and sell companies. If what you say is true , please SHOW ME HOW MENTOR AND CHALLENGE MY LEARNED MIND

  5. If you have a partner, good credit and/or a little cash this is absolutely the fastest way to become a millionaire. After 10 years studying businesses as an analyst this idea sticks out the most.

    Not sure how to go about if you're dirt poor initially, you may have to wholesale real estate and build up some credit and capital first..?

  6. Title says "how to buy…" but after 15% of the video all I've heard is "why I should buy…". Why would I watch this video if I didn't have good reasons already? Makes me think about stopping the video. Will he ever start talking about the advertised topic?
    Concentrate on the intended topic, people who are really interested don't have time for philosophic monologues.
    (30% in still no word about "how", bye bye)

  7. The one question evryone has is where to find the deals. Thats the main thing. One question with regards to calling a business to ask if they would consider selling how would you put yourself in the best position that they take you seriously

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