by Debbie Ruston, Featured Contributor
I RECENTLY READ an article that stated one should save at least 1-2 years salary before starting a business. While this would be ideal, if starting a business required saving 1-2 years salary, most would never do it. Yet, most people believe that it is normal to have a car payment, and buy the car they want by taking out a bank loan. A car depreciates the moment it is taken off the lot. It is a purchase people make without even questioning the decision. The rationale is “everyone does it”. When it comes to “investing” in a business, society is conditioned to believe it is too risky, they don’t have the money, they can’t borrow it, etc. People build up all the reasons they don’t have the capital required, even though the same people didn’t have the money to buy a car, didn’t have the money to buy a home, etc., but because it was important to them, were willing to borrow.
Every business requires capital. Regardless of whether you are starting a hot dog stand and need $2-3,000, or a major business that requires 6-7 figures, every business requires capital to start.
When you are raising a family, there will always be conflicting priorities – mortgage payment, car loan, visa bill, a new roof, childcare expenses., etc., etc. This is when it’s important to understand leverage. Using other peoples money (ie. banks, credit unions, etc.) provides leverage. When you are borrowing money to start and run a business, you are creating opportunity for yourself. Running a business has to take on the same priority as you used to justify taking out a mortgage, a car payment, a trip, new furniture, braces for your children….the list goes on and on. How bad do you want it? If the priority is strong enough, lack of capital will never be an issue.
If you truly want to be an entrepreneur, stop buying into your own excuses. Lack of capital is never the issue….lack of creative thinking, being solution oriented, buying into fears or limiting beliefs, is the issue. How bad do you want it? Recognize where you are holding yourself back, and push through to find the solutions you need to achieve the goals you have. You must be willing to change your “thinking”…..you will never become an entrepreneur if you are making your decisions with the same mindset as you have as an employee. Start making powerful decisions, and taking powerful actions that support what you want and stop settling.