SBA Loan Business Acquisition

A strategy to acquire existing profitable businesses through entrepreneurship through acquisition (ETA), using other people's money via SBA loans and seller financing. This approach targets established businesses that are already generating cash flow and can be improved through modern business practices.

Key Points:

• Target Profile:

  • Established businesses with proven track record
  • Already generating around $1M in annual profit
  • Local businesses with potential for improvement
  • Businesses owned by retiring owners who haven't modernized operations

• Financing Structure:

  • Use SBA loans
  • Leverage seller financing
  • Possible to acquire with $0 of personal money down
  • Take full ownership of the business

• Strategy Benefits:

  • Skip startup phase and learning curve
  • Acquire existing cash flow from day one
  • Improve operations through modern marketing and business practices
  • Potential to grow business 20-30% through modernization

• Example Case:

  • Sarah Moore acquired an egg carton manufacturing business
  • Used SBA loan and seller financing
  • No personal capital required
  • Business generates $1M in annual profit
  • Took full ownership of operations

• Best For:

  • Top 5% in terms of brainpower or experience
  • People with 5-6 years of work experience
  • MBA students
  • Previous management experience
  • High IQ and driven individuals