Sponsors:

DueDilio is your go-to marketplace and advisory service for all things related to small business acquisitions.

and

Final Ascent, a premier boutique professional services firm specializing in mergers and acquisitions, exit strategies, and growth consulting tailored for lower middle-market firms across the U.S.

E272: How to Buy a Business with Almost No Money: SBA Loan Strategies & Franchise Goldmines

About the Guest:

Beau Eckstein is a business coach and expert in SBA lending, business acquisitions, and franchising. With a background in real estate and finance, he now specializes in helping aspiring entrepreneurs secure funding and find the right business or franchise to acquire. His experience includes flipping houses, securing SBA loans for clients, and even starring in an HGTV house-flipping show. His latest project is his book Paycheck to Freedom, co-authored with Tom Wheelwright, aimed at guiding people from employment to business ownership.

Summary:

This episode of How2Exit features Beau Eckstein, a business coach with deep expertise in SBA lending, real estate, and business acquisitions. His journey from struggling student to real estate investor, then into SBA lending and franchise brokering, highlights the resilience and adaptability needed for success in business. The conversation dives into financing strategies, franchise opportunities, and the critical role of business ownership in wealth creation, with Eckstein sharing valuable insights on how entrepreneurs can leverage SBA loans and other funding methods to achieve financial freedom.

Key Takeaways:

1. From Failure to Success – Eckstein’s early struggles in real estate and financial collapse in 2008 forced him to reinvent himself, leading to his expertise in SBA financing and business ownership.

2. SBA Lending as a Wealth-Building Tool – SBA loans, especially the 7(a) and 504 programs, provide pathways for entrepreneurs to finance businesses with as little as 10% down.

3. Franchise vs. Independent Business – While some prefer acquiring independent businesses, franchises offer proven systems and structured support that can accelerate success.

4. The Myth of Passive Income in Real Estate – Owning rental properties isn’t always the cash flow generator people assume; business ownership often yields more predictable profits.

5. Recurring Revenue Models Win – Businesses like pest control, restoration, and commercial painting franchises generate recurring revenue, making them attractive investment choices.

6. Private Equity in Franchising – PE-backed franchises can be a red flag for some buyers, as corporate strategies may prioritize investor returns over franchisee success.

7. SBA Loan Collateral Requirements Can Be Tricky – Borrowers with significant real estate holdings may find SBA lenders requiring liens on personal assets, making alternative financing strategies worth exploring.

8. Eckstein’s Mission: 100,000 Business Owners – His goal is to help aspiring entrepreneurs transition from employees to business owners through education, financing, and franchise opportunities.

Article:

From Paycheck to Freedom: How SBA Loans and Smart Deals Can Unlock Wealth

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Growth & Acquisition - News Newsletter

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Thanks to Sweetview Partners, an Acquisitions company looking to buy Texas-based B2B companies in the $1MM - $30MM revenue range. Click on the logo to check them out.