“I can’t start a business, I don’t have any money!” I’d currently be on Forbes’ Rich List if I got a nickel for every time I’ve heard this limiting belief. My response? “Great, you’re in an excellent position to become extremely successful!”
The misconception that a business needs a loan to start-up is the old way of thinking. Here are 6 reasons why you should structure a bootstrapping business model:
Reason 1 – Because it’s Possible to Start Without a Loan
Some people say you need money to make money. This is 100% false. The era of needing millions of dollars to finance the equipment in a factory are no more. These days a factory can simply be a computer, Internet connection, cell phone and a strong passion.
Do you have a specialty? Start consulting. Are you handy or analytical? Create a repair business. Have a way with words and something to say? Blog it, gain an audience then sell something to them… The business options are literally endless these days.
Reason 2 – Less Stress
Worrying if you’ll make enough money to cover the next installment will keep you awake at night. The bank doesn’t care about you; they care about their bottom line. The same goes for VC’s… unless you think you have the next sensation, stay away from sharing a portion of your business in turn for a quick buck.
Reason 3 – Keep Your Friends and Family, Happy Friends and Family
It may be easy to call your rich uncle for start-up capital. But it will be extremely difficult to re-call him 6 months later to announce that you chose to go another route in life and the business will be closing.
Reason 4 – Creative Advertising
Marketing your business can be expensive or it can be extremely cheap. And surprisingly, the low-cost marketing methods may be remarkably effective. A blog, Facebook page, business cards and a little creativity will take your business much farther in the beginning than say TV/newspaper ads and a billboard.
Reason 5 – Materialistic Wants are Not Needed
Fancy office chairs, state-of-the-art laptops and a Starbucks-esque espresso machine in a prime-location office may be nice but they are not necessary to start. Some of the largest companies in the world have been started in someone’s basement with recycled equipment. Additionally, the lack of this unnecessary stuff in the beginning will give you something to strive for. And (trust me on this one) buying that comfy Aeron chair will be much more rewarding when paying with those hard earned profits.
Reason 6 – Exit Strategy
I hate to say it, but not all business ideas will be successful. And a failed business with a pile of debt creates two scenarios for you: scramble for money from personal sources or declare bankruptcy. Neither choice sounds enjoyable!
You don’t need money to make money!!!