Talking about starting a business, many people immediately stopped walking because he felt did not have the capital to start. "I really wanted to be a businessman, but I do not have the capital" was a comment about the average of the newbies I meet, and discuss here the capital means cash money owned to start a business.
n another context, the statistics show that 50% of businesses are closed before the second birthday, 80% closed before the fifth birthday. And that is very interesting to be observed, was one of the reasons why they are out of business in a very young age is "Easy Money", money and credit is too easy to obtain. How can that be?
It turned out that easy money to make a stupid businessman. With the money and easily available credit they have a very broad opportunity to cover up mistakes in business. For example, when sales did not reach the target, when the receivables are not collectible, when the team was not able to complete tasks on time, when the income can not cover the cost, then by easy money and easy credit you will feel fine. This is because it is always able to close the shortage of cash flow without making performance improvements, so that the low sales do not affect the psychology of the company, and your team as if getting messages "sales targets are not important in this company".
Many entrepreneurs running from one problem to a deeper problem that always cover his mistake in not doing business with the improvement fundamental way of doing business. When businesses in financial difficulties caused by a poor performance they have done is to restructure its finances, by providing better bailout cash taken from his personal pocket or by way of debt, even many of whom I met them close the financial problems by using money that high-interest loan sharks.
They lead with his money, until one point of their business actually quit because of financial burden is very deep and the business performance never improved as expected. Successfully led the company's entrepreneur is not about money but with time!
A contradiction, the newbies think that money is the key to business success, in fact money can actually be a business killer, because the easy money making entrepreneur stupid. If we look at the success stories of businessmen, most of them just starting a business with capital scarcity, this is what forced them to always think creatively, because there is no choice but to improve the performance of the company to survive and thrive.
They start a business with minimum investment, raise money through small businesses and stepped into the next business bigger. Actually what they do in the world of entrepreneurship is called "Financial Bootsrapping", minimize the necessary cash when starting a business.
Financial bootstrapping can be done in various ways, ranging from how to get the goods with a long payment, sharing facilities with other businesses, the application of the minimum inventory, and so on. Many of the books that inspire how you start a business with very limited capital (they call it capital or capital 0 knee).
A very inspiring story comes from Dell Computer to start the business with only 1000 U.S. dollars, and in a few years can bring Dell Computer into a business with the scale of hundreds of millions of dollars.
The question "Can you start a business with cash for a million to ten million dollars right?"
Rabu, 18 November 2009
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business with zero capital
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