PUT YOUR MONEY WHERE YOUR PASSION IS

The rule of making money from your outfit or business is very simple. The more you put in, the more you can later take out. And the more someone else put in, the less you can later take out.

You see, it is simple.

Banks and investors do not provide entrepreneurs with money out of the goodness of their hearts. They want a return, ROI, and until they get that return, they will monitor your efforts, push you in directions, request reports upon reports and do whatever they can to ensure they get that return.

If you can possibly go it alone without outside money, then do it. Reduce your outgoings, raid your savings, dispose some valuables and put your money where your passion is.

Entrepreneurs who are setting up their own consultancies or working as freelancers are the most likely to be able to afford to go it alone because the cost of setting up a home office or even renting premises won’t be that high. However, if you are in a technology business or have a physical product that needs prototyping and manufacturing, or you need to invest in a large physical space such as a boutique or restaurant or supermarket, you may have no choice but to approach banks and investors.

Putting your own money into your own venture is not just about maximizing your return. It’s about financial discipline too. Trust me when I say you will be so much more careful with your own money than when it is someone else’s. You might be tempted to buy new laptops for yourself and the rest of your team, you might like the idea of working with a famous architect, an international photographer or an award-winning designer or perhaps you’ve seen some nifty-looking office furniture that oozes class and sophistication you are craving for. But, do you really need them? Entrepreneurs spending other people’s money might say yes.

However, entrepreneurs spending their own money are far more likely to say no, saving them precious cash, and ensuring they have enough money to spend on the most important stuff to get their businesses launched. This is the simplest discipline to master if you really want to take off on your own as an entrepreneur.

Did you get the picture? Now do what you want.

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