YOU DON’T NEED MONEY AT ALL.
Money is just part of the big business equation.
First let’s put things into proper perspectives.
First let’s put things into proper perspectives.
MONEY IS THE EFFECT – NOT
THE CAUSE.
This is the most fundamental principle but also the most difficult to
understand. I will explain it as simply as possible.
Most people think that you need money to start a business, buy things
like food, clothes, house, car and anything you want. This is the wrong perspective
and results from the fact that most people do not understand what money really is.
This may sound crazy, but actually, money is not the only way to
acquire things. However, money is the most commonly known method to “acquire” goods and services, and only
one known by most people. Notice that I use the word “acquire”, instead of “buy”.
Why do people need money?
People need money because they think that this is the only way to
acquire things. Actually there are many other ways…
For example, did you know that you can get food simply by working in a
restaurant? Notice I didn’t say you can “buy” food. Similarly, you can get a
car by exchanging something of value.
This brings us to the most fundamental definition of money.
“MONEY IS SOMETHING USED TO
ACQUIRE VALUE”.
Now that we’ve cleared that out of the way, let’s see how we can start
a business with little to no money.
To start a business you need 4 things:
1. Demand
1. Demand
2.
The Offer (Product or
Service)
3.
System
4.
Leverage
That's it! There we go again! Notice I didn’t even mention money.
Demand
This is the market side of the equation also known as the customer side. We first check if a market exists for our offer, product or service. This is what justifies whether we should be in business in the first place.
Most people who go into business start by first renting an office or buying stocks, hiring staff and then marketing their goods or services, hoping to justify why they’re in business by acquiring customers. This is the wrong approach.
Most people who go into business start by first renting an office or buying stocks, hiring staff and then marketing their goods or services, hoping to justify why they’re in business by acquiring customers. This is the wrong approach.
The correct approach is to find out whether demand exists in the first
place. This is what justifies the business.
The Offer (Product or
Service)
This is the value we give to the customer in exchange for money. The offer
is justified by the customer. Ever heard of the saying “Customer is king?”
You do not need to bother about what products or services customers
want. They will tell you.
System
The system is the vehicle you will use to deliver the product or service. This includes all the resources you will need to manufacture, develop, acquire, sell, promote or deliver the product or service to the customer. In the case of online business, this could be your website, or some kind of online presence.
The system is the vehicle you will use to deliver the product or service. This includes all the resources you will need to manufacture, develop, acquire, sell, promote or deliver the product or service to the customer. In the case of online business, this could be your website, or some kind of online presence.
Leverage
This is the capital you will need to do business. If you have any
money, this is where it comes in handy, but since we’re dealing with a
situation where we have little to no money, let’s see how we go around this.
Leverage includes all the resources we already have to start a
business, including knowledge, skills and business wisdom. Since we don’t have
money, let’s capitalize on knowledge and skills.
Although we can use our knowledge and skills to draw a foolproof business
plan that we can use to borrow money, I do not recommend this method.
I would first approach the customer and ask them to make a down
payment, but again I will not recommend this approach unless the customer already
knows you. This method raises issues of trust, especially if you don’t have any
references or an existing portfolio.
The best way is to first approach the customer or potential customer
and offer to give FREE services. I know this is hard for most people, but
business is about taking risk.
You can then leverage the free services as “proof” to show other
potential customers. This will not work, especially if you’re in the business of selling physical
goods, but there are ways to work around it.
Recommended Books To Start A Business:
1) Think and Grow Rich by Napoleon Hill
2) Success Through A Positive Mental Attitude by Napoleon Hill & W. Clement Stone
3) The Science of Getting Rich by Wallace D. Wattles
4) DotComSecrets by Russel Brunson
5) The Millionaire Fastlane by MJ DeMarco
6) The 4-Hour Work Week by Timothy Ferris
7) Rich Dad, Poor Dad by Robert Kiyosaki
8) Think Like An Entrepreneur by Erick Bulatowicz
9) The Entrepreneurial Mindset by Rita Gunther McGrath & Ian MacMillan
10) The Power of FOCUS by Jack Canfield
11) UNSCRIPTED: Life, Liberty, and the Pursuit of Entrepreneurship by MJ DeMarco
12) The End of Jobs: Money, Meaning and Freedom Without the 9-to-5 by Taylor Pearson
13) Enchantment by Guy Kawasaki
15) Launch Your Business: The 5 Step Solution to Do What You Love, Quit Your Job and Have the Freedom to Travel and Live Life on Your Own Terms by Rosetta Thurman
16) Reallionaire: Nine Steps to Becoming Rich from the Inside Out - by Farrah Gray
17) COMFORT is the ENEMY of ACHIEVEMENT by Farrah Gray
18) Delivering Happiness by Tony Hsieh
19) Multiple Streams of Internet Income by Robert G. Allen
20) Unleashing the Ideavirus by Seth Godin
21) The E-Myth Revisited by Michael E. Garber
22) Shut Up, Stop Whinning and Get A Life by Larry Winget
23) The Zero Hour Work Week by Jonathan Mead
24) The Little Guide To Un-Procrastination by Leo Babauta
Other Recommended Resources:
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