subject: Why "it Takes Money To Make Money" Is A Big Fat Lie [print this page] You've heard that saying a thousand times. From your grandpa, your dad, your college professors, and just about anyone with whom you've ever discussed one of your "wild business ideas." So often, that you've probably accepted that it's true, maybe even all the way down to the gut level.
Well, guess what? It's a big ole fat lie.
Sure, maybe objectively you can find reasons why it's true. It's hard to start something out of nothing, and if you've ever tried starting a business with $50 in the bank I can almost hear you yelling at me through your computer screen. Okay, you need a little money to make more money. But you don't need that $50,000 loan.
Why?
It'll make you lazy.
That's right; I don't care who you are. When you're trying to get off the ground with next to no cash, ingenuity's the name of the game. You scrimp, you scrape, you come up with new, fresh ideas. You have to; you don't have any other choice. What happens when you get a nice cash infusion?
Well, you don't have to think anymore. Now you're fat with cash, and as we all know, fat is never far from lethargic. You're no longer thinking, "How can I do this better, and for cheaper? How can I make this happen without a lot of money?" When you stop asking those questions, you stop refining your business. Worse than that, you buy things you don't need "for the business' sake." It's a slippery slope.
Before you start looking for funding for your business, ask yourself this: what will you do if you can't get that loan? In the end, the answer to that question will probably be your best idea - not the idea that's going to cost you tens of thousands to implement. If your whole business plan is based on borrowing a lot of money that you didn't earn yourself, you may want to think again.
You're not a corporate big-wig who needs to borrow huge sums of money to manage hundreds of properties and employees and products. Don't try to emulate one. Do you really need that big loan to get your business off the ground? Or can you bridge the gap with a little hard work?
by: Maggie Dawson
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