TIPS: Money is not your biggest challenge

Money is often cited as they main hindrance to starting a business. Many have held back from starting with what they have, waiting until they raise a certain amount of money before starting. Quite a number of people get their wish, borrowed money from friends and family and lost all.  If you don’t know what […]

Money is often cited as they main hindrance to starting a business. Many have held back from starting with what they have, waiting until they raise a certain amount of money before starting. Quite a number of people get their wish, borrowed money from friends and family and lost all. 

If you don’t know what you are doing, money will not help you much. Opening a shop does not mean that you will have enough customers to break even. Many have found this out the hard way. You have to develop a product or service that people really need, not what you think they need. You need to develop a way to meet that need in a profitable and scalable way. One way of doing this is developing and testing a prototype. Put a sample of your product out there and obtain feedback from customers. Test your assumptions and prove your concept. You don’t need a lot of money to do this. You can use your savings at this stage. 

When you have a successful product, getting investors becomes much easier. You have actual data to prove your point, not mere projections. The more profitable your idea, the more attractive it is to investors, including banks.  

Rather than wait endlessly for money to start your business, why not put your idea to the test? If you have a winner in your hands, the money you are looking for may start looking for you.

UsiereUko is author of Practical Steps to Financial Freedom & Independence and can be reached at [email protected], www.financialfreedominspiration.com or  send SMS to 0808 275 0980