Money and starting a busines - published on 27th July 2020.
DO YOU REALLY NEED MONEY TO START YOUR OWN BUSINESS?
By KS Thabana, MBA
Before I answer that question, let us get some definitions out of the way. What is business? The Oxford English Dictionary refers to business as a “commercial activity” or “a person’s regular occupation, profession, or trade”. The dictionary further defines an entrepreneur as “a person who sets up a business or businesses, taking on financial risks in the hope of profit”.
From the above definitions, it therefore follows that a business is an action by an entrepreneur to risk some initial capital in an attempt to make a financial gain. This inherently requires the provision of valued products or quality services to potential clients or customers. Therefore, it apparently seems that some capital or initial money must be invested before some profit can be made. Is that really a requirement for any business of any type to be started? Think deeply about that for a moment? Let us study the following three scenarios carefully, before providing an answer to the question posed by the heading of this article.
Scenario A: Suppose we give you a million dollar ($ 1 000 000) and tell you to start a business. Will your business really succeed? Exactly what will you use that million dollar for? To buy a lot of equipment, stock, computers, etc. To hire twenty employees? To pay for rent …. The list goes on.
Believe me, there are people I know who inherited a lot of money from their relatives… started a business and the business failed! Get me right, I am not saying that you do not need money to start and run a business, I am just saying that having that money alone will not guarantee the success of your new business. See my conclusion below for a proven practical strategy to start and run your own business successfully.
Scenario B: Assume you do not have money, but you have a brilliant idea and a good business plan. You want to open a brand new business by offering some service to customers. People are looking for your kind of services left and right! You start small by offering your services to potential customers, while saving money to expand your business. I am sure you’re starting to get similar business ideas. More businesses that can be started with little or no money are listed in our short business course (see conclusion below for the link).
Scenario C: Suppose you look around and see a lot of people looking for a particular product – for example fresh vegetables straight from a farm. You know a farmer who is producing a lot of vegetables but does not know where to sell them. You approach the farmer and offer to connect him with the potential customers looking for the vegetables. You charge the farmer some commission. He agrees and you are in business without having money! Think of similar strategies…
Conclusion
In conclusion, I believe you are now convinced that you do not necessarily need a lot of money to start and run your own business. To start and run your own successful business, take advantage of our short business course: How to Start and Run Your Own Successful Business. This short course will guide you step-by-step towards the opening and running your own successful business. We will guide you all the way until your business start running.