First Money In
If you’re looking to launch your own business, it’s important to know who will be your first money ‘in’. Your initial answer better be YOU. I’m still somewhat surprised when I meet a budding entrepreneur and having listened to their idea, ask them how they plan to initially fund their business. Many come to our entrepreneurship center in search of a pot of gold, grant, or strategy for others to invest in their enterprise. Many haven’t really thought through borrowing money on a no-interest credit card, taking out a small loan, taking pre-orders, or crowd-funding their launch.
If you don’t believe enough in your idea to invest in your business, the likelihood of others coming to table could be tough. Your investment is obviously your time and talent but should also come in the form of capital. Sacrifice is the name of the game which true entrepreneurs already know. If you believe in yourself and your idea, YOU should be the best investment you’ll ever make. Start by validating your idea which requires no money. Validation reduces risk.
Many of the best businesses are bootstrapped because entrepreneurs learn extreme lessons about how to get creative with little to no money, which in turn drives innovation. Many successful business competitions start by giving entrepreneurs $25 and telling them to go start a business. It can be done. It has been done. I question the creativity of an entrepreneur when I hear someone tell me they could launch a successful business if they only had money. Plenty of well-funded businesses fail. Money can often lead to a false sense of security and can perhaps stifle ingenuity and determination. There can be no better motivator than putting your capital on the line and wondering how to keep the lights on when making sales and generating revenue is your only viable option.