When it comes to buying businesses or building wealth, it often seems like people are chasing the dream of getting something for nothing.
“I want to buy a business with no money down.”
“I want to hire an operator so I don’t have to be involved.”
This type of pursuit, while tempting, misses the bigger picture and is only going to lead you down a path of disappointment. Instead of focusing on what we can’t do, it’s time to focus on what we can do. By doing so, we get to create a flywheel effect that builds more wealth, freedom, and mastery over time.
The Illusion of Shortcuts
Even though there’s no shortage of claims from influencers that they can get you a wealth-generating asset with no effort or money down, the truth is: there is no magic trick to buying and running businesses.
I often joke that what I sell is hard work, and there’s real truth to that – even if it alienates a segment of potential customers who might prefer an easier path.
When I try to illustrate how absurd the no effort or money down schemes are, I try to explain it like this: if you’re looking to buy a house in the $1 to $2 million range, the real estate agent would naturally ask, “How much money do you have for the down payment?”
Now, imagine replying, “None, I’m just planning to leverage the seller and the bank.”
If you think the agent would quickly go to work to find you listings to preview, you’re woefully misguided. The same skepticism and resistance you’d face in that scenario mirror the challenges in business acquisitions.
Entrepreneurship is about giving. Whether it’s giving your time, investing your money, or leveraging your skills, you build value by contributing something meaningful.
Let’s explore these three drivers – time, money, and skills – and how they interconnect to create a flywheel of success.
The Core Drivers of Wealth Creation: Time, Money, and Skills
The reality is that to gain something – whether it’s from a seller, the universe, or any other source – you have to build an engine. And that engine is fueled by what you give.
You give, and you give, and you give. That’s the essence of entrepreneurship.
So, what are the three key things you can give?
The first is time. For many first-time business owners, this means dedicating yourself fully to running and growing the business. It’s the most accessible resource for those just starting out. Giving your time allows you to build experience, learn the ropes, and eventually create something bigger.
The second thing you can give is money. This could mean investing your own savings, leveraging financing, or contributing capital to an opportunity. Even with creative financing, there’s almost always some level of financial investment required.
Although a first-time buyer might have a lot of time to give and relatively little money to put down, an investor, on the other hand, is someone who primarily gives money but not much time. Additionally, the good news about money is that it can also buy time and skills, by hiring a team or bringing in expert consultants.
The third driver is skills. Skills are the expertise and capabilities you bring to the table, built through experience, education, and effort. This could be expertise in a specific industry, sales acumen, or operational know-how. Skills are often the linchpin for new business buyers, as they provide the confidence and capability to manage and grow a company. Importantly, skills also expand over time, creating additional value and opportunities.
These three drivers – time, money, and skills – are the building blocks for creating momentum and value in entrepreneurship.
Three Levels of Time, Money, and Skills
These three facets aren’t things you either have or don’t. You don’t either “have time” or “don’t have time.” You can have a relative amount of time, money, and skills, and this amount can grow or decrease over time as you gain experience, business growth, and wealth.
When it comes to money, you’re putting in “a little money,” relative to the size of the business you’re buying.
If you’re buying your first business, chances are you’re leveraging an SBA loan or another form of financing. This means you’re using a significant amount of other people’s money – in this case, the bank. For larger deals, you might also bring in investors.
Let’s call this “level one” for money.
When it comes to time, you’ll likely be giving “level three” time – as much as most people don’t want to hear it.
In exchange for accessing this larger amount of capital, you’re likely dedicating a significant amount of your own time to the business. You’re signing personal guarantees, taking on the responsibility, and committing years – whether it’s five, ten, or more – to building this business.
Now, where many first-time buyers stumble is on the skills side.
You need a certain minimum level of competence to pull off a deal like this. If you go to a bank and admit you’ve never done anything remotely similar before, you’ll face significant challenges, but oftentimes, you can bring skills from early or mid-career success or a background in the industry you’re entering.
Whether it’s directly relevant or not, you likely have a set of skills that paves the foundation for you to build upon. Let’s call this “level two” for skills.
For a first-time buyer, the model looks like this: moderate skills, minimal money, and a heavy investment of time. This is the classic blueprint for acquisition entrepreneurship when starting out.
Leverage Time, Money, and Skills to Build Faster Momentum
Not only are time, money, and skills things that you can increase for greater success and wealth, but by leveraging each of these, you can maximize the other two. Then, you create momentum.
For example:
If you leverage money, you can use it to attract other people’s time and skills. Think of an investor who contributes capital and gains the benefits of a skilled team working full-time to grow their investment.
If you maximize your skills, you can use your expertise to access others’ time and money. Consider a consultant or another type of expert who builds a reputation for expertise that can attract funding and resources.
If you put in the time, you can increase both your money and skills. The more time you dedicate to your business, you’ll inevitably gain skills along the way. The better you get at what you do as a business owner, you’ll be able to increase the amount of money you also make.
Additionally, each driver has its own lever that multiples its impact. For example:
For time, the lever is talent or partnerships. This could mean hiring employees, forming strategic alliances, or delegating tasks to others. By leveraging other people’s time and capabilities, you can multiply your productivity and buy back time. Dan Martell’s concept of the “replacement ladder” is a great framework for understanding how to effectively hire and delegate as you build a business.
When it comes to money, the lever is other people’s money (OPM). This could include investors, banks, or creative financing methods. By accessing additional capital, you can increase your purchasing power and make larger moves – even if your own funds are limited.
For skills, the lever is infrastructure. This includes building systems, standard operating procedures (SOPs), intellectual property, or teams that expand your capabilities and the value of what you bring to the table. Infrastructure allows you to more easily scale and grow your business (and later, acquire more businesses).
By understanding the levers for each of these drivers, you can strategically amplify their impact and create sustainable growth.
The Goal: Wealth, Mastery, and Freedom
Early in your career, you typically begin in the center of the model, using most of your time, earning a little money, and developing your skills simultaneously. Over time, as you grow and expand outward, you begin to turn what I call the flywheel.
With each rotation, the flywheel generates momentum, helping you build scalable assets and cash flow. This is how you systematically grow wealth and freedom – by giving, leveraging, and continuously scaling.
As this flywheel turns, something interesting happens.
By working outward and investing in time, money, and skills, you begin to achieve more – greater wealth, more advanced skills, increased freedom, and overall scalability. Moving to the maximum of each driver yields different outcomes:
Maximizing money results in wealth.
Maximizing skills leads to mastery.
Maximizing time in this case doesn’t mean giving more time, it means buying back more of your time and achieving freedom.
The point is to build momentum across all these areas. As your flywheel gains speed, you develop not only wealth and freedom but also mastery and infrastructure that make further growth easier. Each deal, project, or investment becomes a stepping stone to the next opportunity.
A Practical Example: Building a Flywheel in Film Production
Let me share an example – one that’s business-related but might not seem so at first. I’ve been executive producing films since the 1990s, and I often get asked, “Walker, why are you producing films? I thought you were the business acquisitions guy.”
The truth is, I only executive produce films that already have a strong foundation in place – a script, a producer, and usually a director early on. My role is to invest, raise additional funds for the project, and then guide it to a successful exit, much like an M&A advisor does with a company. It’s about assembling the right team around intellectual property, making the necessary investments, and navigating the project to completion.
In the beginning, I started small, working on modest projects. Over time, with each success, my experience grew. Now, I’ve been involved in over a dozen films, and I’ve gained opportunities to work on major projects.
For example, I’m proud to say I’m an investor in the latest James Bond film – arguably one of the most iconic intellectual properties out there. I made that investment four years ago, and it’s a testament to how far this journey has taken me.
The key takeaway is: the more I turned the flywheel in this industry – building my resume, delivering results, and expanding my network – the more opportunities opened up. This same principle applies to real estate, business acquisitions, or entrepreneurship. Start small, build momentum, and let success compound into bigger and better opportunities.
Build Your Own Flywheel
As you build momentum, you develop your skills, grow your wealth, and expand your freedom and scalability. These elements compound with each step forward – skills lead to greater mastery, wealth unlocks new opportunities, and freedom enables more strategic growth. The more you cultivate these areas, the greater access you have to the infrastructure needed to sustain and scale your success.
This process isn’t unique to a single field. I’ve experienced it in the film industry, real estate, and business acquisitions. It’s a universal principle of entrepreneurship: momentum builds on itself, creating ever-expanding opportunities.
If you’re considering buying a business, start by assessing what you can give – your time, money, or skills. Identify your gaps and create a plan to bridge them. Whether it’s learning a new skill, saving for an initial investment, or dedicating yourself fully to running a business, every step moves you closer to turning your flywheel.
In the beginning, you may have more time than money or skills. By investing that time wisely, you gain experience and start building your expertise. As your skills grow, you can attract investors, secure financing, or hire talent to amplify your efforts. Each success opens new doors, broadening your options and influence.
Over time, the goal is to balance and maximize all three drivers:
- Money brings wealth.
- Skills lead to mastery.
- Time unlocks freedom.
The journey is challenging, but the rewards are well worth it. With every turn of the flywheel, you’re not just building a business – you’re creating a life of wealth, freedom, and mastery.
Ready to acquire a business in the next 12 months? The Acquisition Lab is your first stop. Reach out to us today and get on the fast track to becoming an acquisition entrepreneur.