Sick of working for someone else? Stop whining. Get your act together and form a business you can make money at over time. Be your own boss and you know all that hard work will end up in your pocket.
Americans are in debt. The same goes for small business owners. Why do most of us borrow money to start a business whether we need it or not? Starting with your own money keeps things positive right away.
Ideally, you want to build a business that will last for a long time. Yet, you also want to build a business that is worth something when all is said and done. If you want your venture to be worth more than most others, using your own savvy is the way to do it.
Borrowing now could put an end to your business down the road. Why? If you start out in hock to creditors, how are you going to get more cash when you have cash flow or expansion needs? It will be impossible.
As your business grows, investors will become a probability. What makes investors take notice? A strong balance sheet is certainly a key, but a low debt position is also a huge factor to them. No or low debt is evidence of an efficient operation.
Showing a tight set of books cannot be understated when it comes to financial dealings. Investors are looking for trends. They know you will try to clean up the books at the last moment. This is why they look to the beginning of the business.
It is easy enough to say do not go into debt to start a business, but how exactly is this done. Money, unfortunately, does not grow on trees, so you have to get it from some other sources. That means getting organized.
You should be saving up money to begin with. On top of this, start extremely small. As you slowly grow, start budgeting your money to slowly expand. Slowly is the important word. Expand to quickly and you will run into cash flow problems.
For every Google, there are thousands of businesses that bit the dust right off the bat. Do not be one of them. Start slow and grow in a slow and controlled manner. Minimizing debt will make all the difference in the world. - 15246
Americans are in debt. The same goes for small business owners. Why do most of us borrow money to start a business whether we need it or not? Starting with your own money keeps things positive right away.
Ideally, you want to build a business that will last for a long time. Yet, you also want to build a business that is worth something when all is said and done. If you want your venture to be worth more than most others, using your own savvy is the way to do it.
Borrowing now could put an end to your business down the road. Why? If you start out in hock to creditors, how are you going to get more cash when you have cash flow or expansion needs? It will be impossible.
As your business grows, investors will become a probability. What makes investors take notice? A strong balance sheet is certainly a key, but a low debt position is also a huge factor to them. No or low debt is evidence of an efficient operation.
Showing a tight set of books cannot be understated when it comes to financial dealings. Investors are looking for trends. They know you will try to clean up the books at the last moment. This is why they look to the beginning of the business.
It is easy enough to say do not go into debt to start a business, but how exactly is this done. Money, unfortunately, does not grow on trees, so you have to get it from some other sources. That means getting organized.
You should be saving up money to begin with. On top of this, start extremely small. As you slowly grow, start budgeting your money to slowly expand. Slowly is the important word. Expand to quickly and you will run into cash flow problems.
For every Google, there are thousands of businesses that bit the dust right off the bat. Do not be one of them. Start slow and grow in a slow and controlled manner. Minimizing debt will make all the difference in the world. - 15246
About the Author:
Patrick Gibson writes about venture capital for VentureCapitalInvestmentFirms.com.
