Why Do Business Owners Sell?

There are numerous reasons why an entrepreneur may decide to sell a successful business. They might be retiring, relocating, or simply seeking new ventures. The key takeaway is that every day, countless profitable businesses are available for sale.

Some businesses necessitate an owner-operator, meaning you must be present to manage operations regularly. Conversely, other businesses are structured for absentee ownership. This means that while employees or managers handle daily operations, the owner can check in periodically—perhaps weekly or bi-weekly—to oversee the company's needs. This model allows owners to manage multiple businesses simultaneously, dedicating merely 5–10 hours a week to each, all while potentially earning a six-figure income from each business.

You might be wondering, "That sounds fantastic, but doesn't buying a business require substantial funds?" In some scenarios, yes. However, many sellers are open to providing seller financing to prospective buyers.

What is Seller Financing?

Seller financing occurs when the business seller agrees to let you purchase the business with a minimal down payment (or sometimes none at all) and enables you to pay back a portion of the profits over a specified period, often until reaching a set dollar amount.

For instance, if a business is priced at $100,000 and you only have $10,000, the seller might accept your initial deposit and allow you to repay the remaining $90,000 over five years from the business's profits. It's also possible that the seller may request some interest annually.

Thus, you've acquired a cash-flowing business for a fraction of the initial cost, generating revenue for you long after the seller has been repaid.

How to Discover These Opportunities?

Every day, hundreds of businesses are listed for sale, but not all are structured for absentee ownership or offer seller financing. This is where BizBuySell comes into play.

On BizBuySell, you can browse through over 45,000 businesses currently on the market in the United States. The platform allows you to filter results to show only those listings that offer seller financing and permit absentee ownership.

This approach can be highly scalable. For example, you might buy a business using seller financing, streamline its operations, and then utilize the extra cash flow to purchase another business under similar terms. If each business requires only 10 hours of management weekly, you could effectively oversee four cash-flowing businesses in the time it takes to work a standard 9-to-5 job.

Would you prefer to earn $100,000 a year working for someone else, or own four businesses each generating $100,000 annually ($400,000 total) while being your own boss?

Before making any purchase, it's crucial to conduct thorough due diligence. Having a mentor to guide you through this process can be incredibly beneficial. Codie Sanchez, a venture capitalist and expert in "Boring Businesses," shares valuable insights on this topic across various social media platforms and through her informative newsletter.

Absentee ownership presents a remarkable opportunity to break free from the conventional 9-to-5 grind!

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