HomeNew Business OpportunitiesNo money down and how to make a profit

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No money down and how to make a profit — 7 Comments

  1. Kevin,

    Reading this gave me pause… Often, we realize that starting a business on a shoestring means living within the meager income of a startup, and that can be a challenge, but generally doable. But the clear cost of doing business must come before we take a living wage.

    In many ways, we seek to increase our income to make the process work, but a reality may slap us before we get to that point.

    In working with startups and selling business development options. I’ve learned one thing. You can’t SELL from your own pocket. Your inability to afford a product doesn’t mean your customer can’t afford the product.

    Increase your income to meet the required costs of operations.

    • Hey Stan,

      Thanks for your thoughts.

      Your comment, “cost of doing business must come before we take a living wage” is a significant part of starting a business. “Know your numbers” means you need to know if at each point in starting a business and each transaction is to know if you’re profitable or not. You don’t have to “spend money to make money” as most are told, there are other avenues for this.

      “You can’t SELL from your own pocket” reminds me that you CAN use OPM (Other People’s Money, both a vendor’s AND a customer’s) in order to get from a vendor your supplies, add your value, and then sell to your customer. But you NEED to have integrity and trust to do this.

      “Your inability to afford a product doesn’t mean your customer can’t afford the product” is so RIGHT ON!! OUR perception of something is NOT what our customer sees. If you are poor and sell to the rich, you may not want it but THEY may want it. At book signing I write, “Find a hungry crowd and feed them.”

      Same goes for richer people who don’t think twice about spending tons of money while you’d question their spending sanity on WHY? A recent example with someone I was working with when this person was pricing our product so cheaply that I was not going to make any money. To them, they needed a tax deduction, to me, I needed margin and profits to make a living.

      Thanks for your inputs.

  2. Just thinking, not every business can be started without operation capital. Some require operations capital to fund manufacturing. Which is often the key to starting the business, having product to market.

    Kevin, I understand what you’re saying about increasing your income. The question for me, then becomes how would you start a business if there is requirement for up front costs? If perhaps, selling stocks were a possibility, those costs could be funded with investors rather than a loan, but most investors desire some history of success.

    Both sides of this could be beneficial to new business development.

    • Manufacturing product is a bit different from operating a business such as information based, or real estate. There is no manufacturing there, so no real upfront costs, that can’t be spread over a period of profit. Business cards, perhaps some yard signs for real estate, but selling real estate could indicate profit potential from sales, even before signing sellers.

      • Mrs. Fields started “baking cookies” in her kitchen, required little more than ingredients to time tested recipes before she hit it. There are TONS of businesses that are “no money down” or even low cost that gets people’s business acumen moving along. Jan’s comments are accurate. Start small, fail small, losses small!

    • Stan, agreed that not ALL businesses can have “no money down.” But at issue is to address what business you’re in, how much capital DOES it take. In most cases people have MORE money available to put to better use if they opened up their eyes some. Too often I hear, “But I don’t have any money?!”

      So it depends on WHAT business you’re in. What may NEED to happen is to start different and smaller business, or take another job, to help get it off the ground if your current income can’t support it. This smaller business or second job could help provide funds (or savings) UNTIL you’re ready to move to the next step. In other words, the “go big or go home” is a bunch of hot air. Start small with small successes, then scale it up.

      My suggestion: Start a SMALL business first, getting your feet wet with running a SUCCESSFUL smaller business. As John C. Maxwell has stated in “Failing Forward,” most millionaires start and close 4-5 businesses before becoming successful. Lots of growth is needed in a person and business level.

      Thanks for your comments, Stan. Appreciate it.