Short YouTube monologue (Codie Sanchez) explaining four practical ways to acquire business ownership with little or no personal capital: (1) use other people’s money (loans, SBA, third-party capital), (2) trade expertise for equity, (3) earn sweat equity by doing operational work, and (4) structure deals to capture ownership through creative transaction design.
Chapters
What can I do if I want to buy a business but I have no money? There's four things you can do. One, you can get other people's money. That could be loans, that could be sba, that could be raising third party capital. Two is expertise. You could actually know a lot about podcast producing. And so if you came onto a podcast, you ask for a little cut of profits or revenue, you're a pro, you're going to materially affect the outcome for the podcast, so they're going to give you some equity in the business. The third is sweat equity, which is just like, I'm going to do all the work, I'm going to take off all the tasks you don't want to, and for that, I want to be compensated for my time and effort. The fourth that not enough people talk about is structuring. This is knowledge. Do I know how to deal? Make enough that I can structure a transaction that allows me to get part of a business without anything else. That is really how the smartest deal makers do it.