How to Acquire a Company for Free

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Right now, only a few miles from where you live, there is a free company that's yours for the taking. Here's what I mean: There are many businesses (both independent companies and small, local divisions of larger corporations) that, in a recession, move from positive to negative cash flow. When that happens, many business owners would rather just get out than continue to bleed. As a result, you can walk in, sign the papers, and take over a business. All you have to do is to convince the owner that you have the ability to fulfill the lease or to pay the mortgage. You may also be obliged to sign a small note to give the owner some upside.

How can you find a free company to take over? Check out business brokers on the web, Craigslist, and the classified ads in your local newspaper and any trade journals. Or simply go to a nearby business park and knock on every door. You'll be amazed at what you find there. Many business owners do not think that they can sell a struggling company and, therefore, they don't try to market their business even though they very much would like to move on.

But, you say: If the business is losing money, why would I want it? It is the same question that any start-up entrepreneur should ask him- or herself. If you cannot bring fresh ideas, energy, and skill to a business--any business--then it will not succeed. And arranging to take over a free company will actually provide you with a meaningful advantage, because you will be amassing resources and assets at little-to-no cost.

Don't worry about what the business does in terms of revenue right now; look at it as a start--a platform that over time can be morphed into what ever you want.

Go find yourself a free company today.

Veteran entrepreneur Nolan Bushnell is the founder Atari, Chuck E. Cheese, Etak, ByVideo, Axlon, and uWink. Among his accomplishments, Bushnell invented Pong, hired Steve Jobs, and developed a series of robots. He lives in California. @NolanBushnell