Fact or Fiction: Only Those With Money Can Make Money?

woodsy424

 I have been working on my business idea for roughly the last year now, and while I have been told by several people that it is a sound idea and that I have a solid business plan, the fact remains that I have absolutely no money to put towards this venture.  Of course I have been assured by those who believe in my idea that there is money out there, specifically through the SBA, and that as long as my idea is solid, I can receive funding.  On the other hand, I have talked with many skeptics who feel the only people who can realistically start their own business are those who have a great deal of their own money set aside already.  Coming from my financial background, my fear isn`t so much that I can`t secure the proper loans, rather that something will happen and I will be unable to repay the debt.  While I have confidence in my idea, I am also practical in the sense that I am aware that any and all businesses are subject to financial hardtimes and certainly even the best laid plans can fail.  I have gone through all the steps to start my business, but I am terrified of applying for a loan, fearing that in a matter of months I may find myself living on the street.  I came here hoping to hear what others think about the idea of only those with money can make money, and to possibly be reassured that I won`t be living in a cardboard box should I go through with my plans.  While we hear of so many success stories, for each one I am sure there are ten times as many failures.  Thoughts or opinions?

Ltressel

Hey Woodsy,It`s interesting how we come across the skeptics and a lot of times fall prey to the fear they generate. That very fear, you start owning and prevent you from trying. You`ve gotten this far with your project the next phase is looking for funding.  You fear failing without even looking into it.A little over a year ago, I thought we were at our last breath with our business. I had one house that I thought I can fix up and sell straight away.  I borrowed that money from a friend who wanted to jump ship before we even got a start to rehab it.  Needless to say, things were falling apart fast. I was ready to go back to work for somebody else.It was a solid mess that anyone could`ve just walked away and called it a day. I used what we had left to finish the job, give the money back to our "friend", and re-financed the house with a cash out.  I know-more debt you would say?  I had to go all out with faith that I can turn this around.  I did. 20 houses later, my business is at its highest potential.  I`m even able to fund other projects outside of real estate.  Looking back now  I`ve learned to take on every challenge with plenty of courage, faith in myself, and unquestionable conviction.Take the risk and accept the challenge!LT

MNGrillGuy

I think it depends on the business.  If it`s a product, you need tons of money. If it`s a service you only need a bit of money.  But you always need some money.   

ToddF

MN thats true and usually when I choose a service I try to pick a need service not a want service.

PiperTax

I, too, agree with MNGrillGuy. My business required very little money to start. My suggestion regardless of what type of business you want to start: start small.
I can`t imagine that anybody would be so lucky as to not make any mistakes when starting a business. (I`ve made several myself.) And when it`s a small amount of money, and money that was actually yours, you aren`t in nearly the mess you would be in had it been a mistake made with a large amount of borrowed money.

txbassguy

having started up and failed a few businesses myself - I`d say it definitely takes money - whether it`s yours or someone else`s. I`ve yet to find a business that can be started with no capital.While it`s true there are grants and loans for small businesses from the SBA and the government - it`s just not as easy as people will have you believe. Banks just aren`t lining up to give small business owners cash - in my case - I am/was trying to start a wing franchise. It still takes putting up your own money, having experience in the field, near perfect credit, collateral, and a lot of time filling out paperwork.

Fusion7

 I  I have gone through all the steps to start my business, but I am terrified of applying for a loan, fearing that in a matter of months I may find myself living on the street. 
If you are truely terrified, now may not be the time to move forward.  In my experience,  in order to succeed, you really need to be at peace with your decisions.   I recently found that this aligns with all that "law of attraction" stuff that`s been on the web and on TV in the past year.

robertj

I agree with rasiecapital - it takes some resources to start and build a business. The amount and type of required resources will vary depending several factors including the kind of business and the ultimate goal.
However, I think there is a  difference between "bootstrapping"  and trying to create a business on a shoestring.
 

woodsy424

Coming from a job where I work in close connection with the franchise owner, I have seen first hand that if you don`t have money, or at least some very strong connections, it is very hard to set out on your own.  While perhaps he was just trying to discourage me from leaving his business, he pointed out many of the costs that can cripple a young start up like the one I have in mind.  Of course there are those out there much younger than my boss who say now is the time to take a risk, as I am young and would hopefully be able to recoup any major losses I might suffer.  I supopse there is no easy answer.  If I am head-strong enough to go to a bank and apply for a loan, either it will be approved or it won`t.  I certainly want to thank all who responded to my inquiry, as it is very helpful to hear what others think.  There really is only one way to find out if I can get the funding I need ot not, so I should probably get to it.

robertj

woodsy424,
Yes, there comes a time when one needs to take action. However, well planned and properly sequenced actions will reduce the time required while increasing the "success" factor.