Do you need money to make money? That's a question millions ask.
There are roughly 12.100 monthly searching on how to get financing for a business on Google. 165.000 average monthly searches on how to start a business.
People are searching for ways to financial freedom. I was one of them. The issue with search results is that there are too many. It's easy to get sidetracked and lose sight of what we are looking for.
The previous article I wrote "Mistakes", is a part 1 to this question. If you didn't read it I would encourage reading the previous article first before continuing reading this one.
"Yes', you need money to make money, however, before focusing on the mere impossible, business owners should seek and exhaust all free resources available before diving into debt.
The business is a risk. Taking risks has allowed me to build LGV Limousines. The issue with risks is that there are bad and good risks. Each individual situation is different and I can't speak for all. Some people have a thousand dollars to launch a business while other millions.
Having more money does not make you a better entrepreneur. Having more money, just means you have more to lose. A person with a thousand dollars and a million will make an equal mistake, however, it's easier to take a thousand dollar loss and quickly recover rather than a million-dollar loss.
The limousine service I build requires millions of dollars on the scale I built it. I did it with $246.00. Those are the alternative sources I am talking about. It's difficult to be creative and it's easy to give up.
I had a friend who wanted to start an advertising firm. It was a great idea he had, however by the time he added in all his cost to start his business he was looking at over five hundred thousand dollars, just to have a foot into the door.
I looked over his business plan. He added an office space at the cost of $4,000.00 a month, several Mac computers, each $3,000.00, his payroll alone was an astonishing $4,500.00 per week.
I dropped his business plan down before I even finished analyzing all other expenses. I looked at John and said. Why do you need a $4,000.00 a month office space? His response was that it will give him a more professional look. I responded and asked John, a more professional look for who? You will be mostly doing outbound sales, your clients will be all over the US, unless you plan on flying them each to your office, which I hope that isn't part of your budget expense, most of your business will be conducted either over the phone or via web-conference, and not to mention a $3,000.00 computers, you haven't even begun to advertise your business, are you planning on having 20 clients the first day you launch, and why are you trying to hire 5 employees right from the start?
John didn't like the questions I asked, he had a grim look on his face and I knew he was upset. He felt like I was ripping his business apart before it even started. He knew I was right, knowing the experience I had in the past.
The issue is that most entrepreneurs focus on spending before earning. There is this grand idea we have in our head of starting and owning a business. The truth is, it will be grand, but first start with a strong foundation before building a skyscraper.