How To Start A Business Without A Lot Of Money
——————————————————————-
There’s a false belief that in order to start a business or even buy a business you have to have a bunch of money. But think about it, if you have a ton of money already from whatever else you might have going on, there wouldn’t be much reason to open Pandoras box of entrepreneurship. At that point, just be an investor. Being an entrepreneur at its origin is the ability to make something from nothing. Jean-Baptiste Say, the economist that coined the term entrepreneur, wrote this:
“The entrepreneur shifts economic resources out of an area of lower and into an area of higher productivity and greater yield.”
With that said, the ONE step necessary for this journey is understanding leverage.
“The exertion of force by means of a lever or an object used in the manner of a lever.”
Essentially using a lever or force to move an object and achieve an outcome.
It’s a little abstract, but it’s literally the KEY to making money, without money.
In business acquisition and real estate transactions, we use seller financing or SBA loans (the levers) to take down deals (the outcome) with as close to nothing down as possible.
In start ups, we leverage an audience (the lever) to validate ideas and find paying customers before building anything out (the outcome). This prevents us from wasting time / money on something that doesn’t end up working.
In order to REALLY be successful, you DON’T need the next million dollar idea, you don’t need to be rich, you don’t need to be “an expert” or whatever that means….You just need to be able to identify the opportunities you already have available and find that lever to produce your desired outcome.