Have you heard the saying that that #1 reason businesses fail is not enough money? I’m here to challenge that belief. In fact, you already got a hint of that in Secret #2; in 20 years as an entrepreneur the conventional wisdom about being in business rarely worked.
I’ve watched so many business owners throw money at situations believing this old saw--if they just had more money or spent more money, success could have been obtained.
And I’ve seen the opposite: an entire new software product created and successfully launched without direct, measurable funding.
How is it both of these are possible? The reality is that success has less to do with how much money you have to spend than how you spend it. The first three stages of your business have a common task you must make a high priority: keeping money! This is completely opposite most common advice and business logic out there. Remember that tech boom and bubble? Well the “burst” of the bubble had a lot to do with spending money and not protecting any of it. Most of the companies that burst spent money and did not make any. Sadly, lots of tech ventures still follow this model.
Give yourself the mindset of an investor and you’re more likely to succeed. Treat the money you put into your business as if you are your own Angel Investor.
What do I mean by that statement? Investors do not pump money into your business because they believe in the product or the people. (Just check out how often the founders are pushed out by investors early on so you can get clear on VCs [Venture Capitalists] are NOT in it out of the goodness of their hearts.) While I do NOT recommend putting yourself into a business situation you don’t believe in heart and soul, when it comes to money and success, you also need the ability to step back and be brutally honest.
Most entrepreneurs want more of something and that’s why the go into business. More income, more freedom, more control over their own ideas or life…If you spend your money first you’ll always end up with less.
Spend your energy, your time and your passion first. Back all of that up with your investment capital. Be creative first. Out think the competition first. Get outside your comfort zone first—a long way out! Combine these practices with protecting your cash and capital and you create long-term potential for success and income.
When’s the last time you chose a product or service because of the fancy offices, impeccable art display or expensive ad campaign? There is no need for you to spend like big business to get your own business off the ground.
Other people will tell you this perspective isn’t true. Many business coaches and even experts will insist that lack of money is the primary reason businesses fail. I suggest you go ask people who are or have been in business a while how many times and on how many different things they’ve spent money without any evidence of increased profit or income. You don’t have to believe me. But don’t just assume anyone else is giving it to you straight either. Most business advisors have a vested interest in your slow, expensive progress.
My goal is to teach you to succeed faster and for less money just like I do in my own businesses.
Coming next: Secret #4 It’s not just who you know, it’s how and when you tap that connection
Wishing you Success & Heart,
© Copyright 2009-2010 Heidi Sue Roth. All Rights Reserved.