Buying a business isn't limited to companies with boatloads of cash.

Small businesses – and even indie hackers – can use acquisitions to accelerate their growth and increase their odds of success.

Some Debt Is Good Debt

Consumer culture, particularly in America, has begun to look down on debt – for a good reason.

When you use debt to buy something that depreciates, like when you max out a credit card, you're reducing the amount of money you have available to you in the future. 

Buying appreciating assets, like businesses, is different.

When you use debt for an acquisition, you're using each dollar you borrow to earn more dollars in the future.

There's still risk, of course – but there's risk involved in every facet of being an entrepreneur. 

You Can Use That Good Debt To Buy a Business

The business's current cash flow pays for the debt service, and your existing business' revenue provides an extra safety net. So over time, your new acquisition will have paid for itself – provided you run it successfully.

1+1 = 3: When You're Attaching an Acquisition To Your Startup

Startup founders and indie hackers are uniquely positioned to accelerate through growth with a tuck-in acquisition – and wise use of debt can make it possible.

The keys to success:

• Use acquisitions to grow your distribution channels or take advantage of your existing ones.

• Keep your monthly debt payments modest: no more than ~20% of the combined income of your existing business and acquisition.

• Look for similarities and avoid distractions: buy something that tucks into your existing business.