Dealing with Business Start Up Capital Issues – “Ask Julie” Client Request
Hey there, I imagine that every new entrepreneur either faces business start up capital issues; personally or from other people he/she may approach as potential business partners. Whatever your story, I reckon we each have one to tell as entrepreneurs so I am addressing the matter briefly here. Thank You Hans N for raising this matter.
We all know about the chicken and the egg right? I mean which came first? The chicken or the egg, and how did the egg or chicken come about…confusing huh! Ohh then I remember the good Book fixes that problem from the word go… God Said the Word and the earth was created chickens, eggs and all. Mind you don’t lets forget what scientists claim, the Big Bang Theory…i.e. there was a loud bang (Recently they tried to retrace the event and we got a lil poof). Anyway I digress, the loud bang allegedly resulted in dust, from which dinosaurs grew…! Gosh I don’t think I got it right, but hey Im no scientist 🙂 So I can tell you that I will stick to the good book version, it makes more sense to me…to each their own.
What has this got to do with Dealing with Business Start Up Capital issues?
The idea is we all have to start somewhere, no one was born walking, running, self reliant, neither was your city built in one day. So in my humble opinion anyone who wants to start up a bricks and mortar business that requires a lot of capital outlay must create a killer Business plan or proposal which you can present to potential partners or people who could lend or give you the cash in return for something, or backed by a guarantee of repayment or a surety! If you don’t know any such people then check your possessions, acquisitions, maybe you could do a house clear-out & hold a Car boot sale or simply sell something of value to raise the capital to build the business that will replace it times over. Failing the above its is advisable to Go visit your bank Manager and ask for a business loan. Not forgetting the surety to guarantee that loan. It could be salary, property, bonds, that antique jewelry left to you by your Nana…you get the picture! That surety must be of such value that it can easily cover the cost of the Loan you desire, were you to find yourself unable to repay it!
If based in Europe, America, Australia & Some parts of Asia you could apply for a government grant, or small business loan with low or no repayment interest included. Usually all you need for this is proof of income. Grants have specific T & Cs. You could approach a credit union for a small loan there are a few options just check online. If you have a particularly brilliant Idea you could present to The dragons in “Dragon’s Den”. In Africa and many developing countries the situation is quite different. Business start up capital issues can pause a real hindrance to progress to those who don’t have a very strong WHY! And they should approach the issues with more creativity. First and foremost you could approach an established philanthropist with your business idea in the hope of funding or Joint venture, and be ready to become an employee rather than a partner, unless you are “Connected” you know what I mean… I know sometimes life sucks!
I definitely don’t advise you to stand on the Road side with a sign like the dude below.
Now I know Hans wants me to address the Burning issue of why people use Business startup capital issues as their excuse why they cant invest in a business esp. when it comes to home businesses with an MLM type model. The lack of start up capital needed to start an online business usually as a distributor or affiliate is usually a smokescreen! The amounts to start such a venture are so much lower than a bricks and mortar business, Yet this is the trickier beast. And I will explain why. Its all about the mind-set of the people you approach.
Why Business Start Up Capital Issues- is usually Not the Real Reason
1. First off it’s important to know that the people you normally approach know you very well, too well in fact that there are issues of POSTURE. Here is 7 figure earner & our Mentor Ray Higdon’s View on this subject Click Here to Access it. What this means is do these people look up to you in that particular niche you are advising them to invest in. Are you an authority or successful in it? If you too have just started, are you networked to people with authority, success and proven track records as well as systems in place to support new members? If the answer is No then Business start up capital issues will pop up fast! See your Solution to their lack of finances i.e. a business to help them cream an extra income becomes a problem to them as they lack the vision to see long term and thus they invest a problem real or one they invent to avoid working with you. The solution is to Find people with Posture, with Success, with results in a system that requires a very low start up as to wipe out the money excuses, work with then, learn the system & make sure the system duplicates, can be done by anyone and actually has a following of real happy customers. Such a system exists Click here to Check out One.
2. The next group of people you approach may be either acquaintances or simply do not know you from Adam aka strangers! So there are issues of TRUST here. Let me ask you a question, would you meet a stranger on the street, however attractive and tell them you love them, want to move in with them marry them & have children, all on the same day? Well it’s the same with this group of people. You need to build a relationship with them & let them grow to trust you and to COME TO YOU themselves even asking to WORK WITH YOU. At that point, business start up capital issues won’t arise.
3. And finally if Indeed MONEY or the CAPITAL to start is an issue then I would ask you…How well you know this person. Can You Trust them to Invest in them. Whats their work ethos, will they Knuckle down & actually work the Investment to repay your trust? If there is any doubt to the above then You don’t Want to work with them. If someone is well convinced of a program and wants to start anything in life they WILL DO WHATEVER IT TAKES TO GET THE CAPITAL, PERIOD. Otherwise they could Set a STRICT WEEKLY budget, Cut out some things i.e. tighten the belt for a set period of time to save up, save money on everyday items and surely build up the capital for an ONLINE business coz these don’t require a huge capital outlay. For bigger Off line options, as stated above you may have to consider your assets as guarantee/collateral for a bank loan…are you credit worthy? Walk into a Bank & speak with the bank Manager…(Don’t forget your Draft Business proposal & loan repayment plan) ask for their advice…(Compliment them as the expert on financial management) You will get a lot more from that manager and come across as a focused kind of man/woman they could offer a Loan! Of course we cannot overlook support from Family, Friends & Colleagues to raise that start-up capital, people who trust us and see your vision, esp. if they are offered a partnership!
My Advice is Position yourself as a Leader, someone YOU WOULD WORK WITH. Have a Strategy Paul wrote a Post about that. Focus and be patient with yourself. Every worthwhile business takes time to build up and the rewards are worth waiting for, and every successful entrepreneur did fail a few times. The test is in How fast they got back up & built the success we now see! We know people who have borrowed, sold off some treasured property, begged, and done extra odd jobs to raise start-up capital…in various places worldwide. If You Are Determined to make something work, with the right mind-set, delayed gratification, Don’t get addicted to the result, rather focus on the journey, nothing can stop you.
So its all about how to have more posture when approaching potential partners or prospects. As my mentor Ray Higdon says “posture is the number one trait to get you more signups” I posted Cesar L Rodriguez video on How to handle the money objections here And here is his full blog. http://www.cesarlrodriguez.com/why-is-there-an-investment/
If you have found value in this post please drop a comment below simply scroll down. Hans Nowamani I believe I have addressed your point above, please do drop a comment below. Let us know if you need more!