How To Buy A Business With No Money – Dan Lok

How To Buy A Business With No Money – Dan Lok


(dramatic music) (dry erase marker squeaking) – A lot of entrepreneurs, sometimes, they say, well, you know what, I don’t have enough
money to grow my company, or I don’t have enough capital. I always believe that it actually, how many of you have heard of the saying it takes money to make money? And sometimes it does,
sometimes it doesn’t, but from my experiences,
’cause when I first started my own business I had no money. I didn’t have capital
to grow my own business. So I thought, well, is that true? At first I believed it was true, but later on in my career I learned that actually, it’s not true, because I believe that
if you cannot make money without money, you probably
cannot make money with money. Write that down. If you cannot make money without money, you probably cannot make money with money. Because when you have no money, how many of you ever had this experience? When you were getting started you had, maybe bush wrapping
and not enough capital, but somehow you come up with an idea, you come up with the strategies, you make things work, and that happened and you got some sales. How many of you had that experience? Yeah, ’cause it forces you to be, what? To be thinking out of this box, right? Creative. So, repeat after me, “I don’t need money.” – [Audience] I don’t need money. – I need a better strategy. – [Audience] I need a better strategy. – Again, I don’t need money. – [Audience] I don’t need money. – I need a better strategy. Once more, twice as loud. I don’t need money. – [Audience] I need a better strategy. – Let me tell a story. There was this flower shop owner. His name is Matt. And Matt, one day, he owns this flower shop in his little town and it’s been doing well
for a number of years and one day he got
approached by his competitor, an older gentleman, wanted to sell his flower shop to Matt, ’cause he’s getting old, wants to retire, travel the world. And Matt said, okay, if
I buy this flower shop, I would own both flower shops in town and basically, I’ll be a monopoly, everybody would be buying from me only. This is great. Well, how much you want the flower shop? How much are you asking for? The older gentleman,
flower shop owner said, well, I want $50,000. I don’t have $50,000. Well, that’s my asking price. If you want to buy my flower shop, it’s $50,000. Okay, so Matt doesn’t have the money, but he said, I want to
buy and he went home, talked to the wife. Well, can we get a line of credit? Can we borrow money, what can we do, because I can see we
can double the business if he can just buy this flower shop. Couldn’t come with solution, the wife thought he was crazy. And Matt was like, what should I do? Ah, he thought about it, then he called up a brilliant entrepreneur, business man. Let’s call him Dan. (audience laughing) He called up Dan, now, not saying it’s me, just called up this
brilliant business man, he said, well, Dan, can
you loan me $50,000? And Dan was like, well, why do you need the $50,000 for? You know, there’s this
flower shop in my town, that I know if I can buy
it, I know it’s a great location, we will corner the market, and I can double my business
and it would be great. I know it would be great
but it costs 50 grand, I talked to my wife, she
doesn’t want me to do it and we can’t actually mortgage the home or anything like that, but I
think it’s a great decision. Now, Matt doesn’t have the money because what? He doesn’t need the
money, he needs a what? – [Audience] An investor. – Okay, so the brilliant
business man said, well, Matt, you don’t need money, you need a better strategy. Matt was like, what do you mean by that? Ask yourself this question, and you can write this down, who would benefit from this purchase? Who would benefit from you actually purchasing this store? Who would benefit from this? How do you add value? How do you add value? How do you add what? Value. So let me ask you a question, if Matt was gonna buy this
store, who’s gonna benefit? Yell the answer. Who’s gonna be at benefit? The owner, yes, the older gentleman, yeah, he’s gonna benefit. Who else is gonna benefit? Supply, yes. Who is it gonna benefit? Maybe, Matt, himself, ’cause
he’s double the business. Maybe the customer,
’cause now maybe they can, better run business,
better service, who knows? So as this business man is asking about, okay, who would benefit,
who would it benefit? Matt said, well, I guess all these people. Then he asked Matt, well,
Matt, let me ask you this, how much wholesale
business are you putting through your flower shop
right now, per year? How much? Well, he said, about $125,000 a year. That’s what I buy from my supplier. Okay, how many suppliers do you buy from? I only buy from one. So this supplier is getting
how much business a year? $125,000, right? Okay, so Matt, you don’t need money, you need a– – [Audience member] Better strategy. – What I want you to do
is I want you to talk to your supplier. I want you to go to supply and you would ask them this, and this is how you would do the pitch. Mr. Supplier, you know,
we’ve been doing business for the last 10 years. I’ve always been a very good customer, you supply to me your
flowers, I love them, our customers love them. I give you about, what, $125,000, give or take, business a year? You know, here is now an opportunity, here’s what I wanna do. I don’t wanna just give you
$125,000 a year business, I wanna give you a quarter million dollar a year in business. But in return what I wanna
do is I want to sell you the exclusive rights to
provide for my flower shop for the next five years. And in return, all I’m
asking is $25,000 from you and I will give you a
quarter million dollars a year worth of business. What do you think? Now, what does the supplier say? No brainer, right? For 25 grand, quarter million
dollar a year business, no brainer, great. Got the 25 grand now, right? Goes back to the older gentleman, the old flower shop owner and says, well, you know you were thinking of selling your shop and I wanna buy it and you were asking how much? – [Audience] 50,000. – You know I’ve been thinking about it, instead of giving $50,000, ah, the older guy’s thinking, ah, this guy’s gonna grind me now. He’s gonna negotiate. I don’t wanna give you $50,000, I wanna give you $60,000. What? Yes, I don’t wanna give you 50, I wanna give you $60,000. Well, why is that? Well, what I need is, you see, I’ve got $25,000 here. I’ll give you $25,000 right now, the rest, can we work out
some sort of installment plan? I’ll give you 60 grand, if you give me better terms. Now think of the 10 grand you make extra, and even if you get the 50 grand, you’ll probably put it in the bank and get very little interest rate anyway, right now, 50 grand, you
just instantly make 10 grand. Now what is this older
flower shop owner gonna say? Yes, no brainer, let’s do that. Okay, great, so 25 grand, got the shop. How much of his own
money has he used so far? None. 25, got the shop, cornered the market, doubled the business,
making more efficient, operate better, do better
marketing, whatever, might be double now, a
quarter million dollars, he can afford for the monthly payment to the old owner, right? Now, let me ask you the question, is this old owner happy? Yes or no? – [Audience] Yes. – Okay, is the supplier happy? Yes, is Matt happy? – [Audience] Yes. – Because you don’t need
money, you need a better– – [Audience] Strategy. – That’s what I’m talking about, the outside of the box. People say, I don’t have money, well, what are you doing? How can you, who would benefit
from seeing you succeed? Who would benefit from the transaction? Who would benefit from the deal? And you can leverage other people’s time, other people’s money and
at the end of the day, what I believe, the
difference between a great entrepreneur and an average entrepreneur, a great entrepreneur just knows more ways or have more contacts
or have more strategies, or thinking outside the box,
they know how to leverage. If we boil it down to
one word, it’s leverage. It’s just leverage, other people’s money, other people’s time,
other people’s expertise, all of that. So take two minutes. How long? – [Audience] Two minutes. – Discuss what I’ve just said about, and how you can apply
this in your own business, just around the table. Two minutes, go. – [Announcer] 10 times your finances. 10 times your business. 10 times your marketing. 10 times your life. Hit the subscribe button now.

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About the Author: Oren Garnes

100 Comments

  1. Hi Dan, I am on social security and I decided that I can't manage life financially so I started a business as a virtual assistant. I'm not making a whole lot but it's more then what I had before even with my social security.

  2. Little off topic but awesome YouTube is advertising you on your own videos if that's not awesome I no longer know what awesome is .

  3. Like say silence is gold,,,is bulshiit,and say again you no need high education,,,some peoples are because. ,,,,when the era diffrent ,,when era of 50 to 60,,that possibles but still they have to work hard to reach there,,,,until they are millioner ,so bulshit everyone have own ideal ,,,,own spirit on with lucky of they own line life ,like you ,so get reach there,then you share your luckky successfully ,,,as mentor ,,,,motivations to other ,,,but in your speech plesae do not dazal arogan targeting bully to other,,,men

  4. Pow, sprinkling game Sifu Dan. Nice way to brake down principle now that's how you play with the house's money.

  5. now him say you not need money, but in another video say dont start a buisness if you not have money

  6. Excellent! I needed this right now. It gave me ideas to "action-ate" (combine action and activate) right now.

  7. On a monopoly – suply, employees and customers never benefit – that is the whole and sole point of achieving monopoly status, LOL, get it ?

  8. i can't thank you enough Sir dan lok ! i needed this to start a huge business, Thank you very much SIR !

  9. Your my mentor and I will start follow your process to elevate my new business..thanks don will see you at one day….

  10. The point is to figure out how you can craft new terms that will benifit everyone in the deal… Learnt from Trump!!!!

  11. Why only $25K? He could have gotten the full $50K from the supplier and then paid the old owner in full and everyone would still be happy.

  12. Great idea, but for certain industries it may not work. For the idiots with the business degrees, it is a statement of fact, it is not to highlight negativity, but that as a statement of fact, it will not work for all industries, so people will have to think of strategies that are more specific for their industries.

  13. Ok. And the next day I will open a flower shop on the same street and offer better prices and greater services and ruin the poor guy with his 2 flower shops! Thanks for nothing Bob!

  14. Your video is very entertaining and informative, and now I am a member of MLM business here ni Manila Philippines, I opened an account in stock market. Thank you so much

  15. You have talent also double talent As a migrant in Arab country how can you achieve your goals or how can you make money

  16. The poor are employed they pay taxes 40%
    Self employed pay highest tax 60%
    Never be a sole trader in your own name this stands for
    Soon you’ll lose everything
    Say your a builder and get sued or even divorced your accounts can be frozen
    The rich buy companies and invest in assets to create cashflow
    The rich don’t pay tax you can’t tax the rich coz they are not employed
    The rich don’t use money they use debt good debt mortgage etc

  17. INDEED, there are many opportunities out there, only we need an open mind with good strategy, thank you Dan

  18. Dan, here is a question if the seller doesn't agree for installment and need money at one shot in that case how to handle..?

  19. Is Dan Lok the new millennial age Version of Robert Kiyosaki 2.0, because Dan is teaching Fresh contemporary ways to gain wealth in the 21st century?

  20. Food for Thought, but depends on trust and established relationships. Does the supplier believe he will come through with 250K orders where previously he had 125K orders — that's a lot of trust. Does seller believe he will come through with the extra 35K ? Trust.

  21. I don't need money. I need a strategy … and and idea … and someone to walk me through how to accomplish the goal all the way through … while I'm the boss.

  22. Mind blown 🤯 I need someone how can profit off my success. Funny I want to help rich people get more rich after watching this video… without giving them money.

  23. ok dan lok i feel that your strategy contradicts dan pena you are kind and thinking about contacts while dan pena was saying that you don't need any friedns to succeed

  24. In what world does not being able to make money without money mean you can't make money with money? Shits retarted

  25. Yup! The real deal. You have to love our digital age… have a look at this program that I used to make my full income and leave my job: @t

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