Most of us don't have the luxury of large capital to start or sustain our small businesses.
Many successful small businesses have managed without it.
Some folk call it Bootstrapping.
Spending someone elses money is a lot easier. Have you noticed how soon we owe a small fortune on our credit card. Especially if we don't pay it in full at the end of each month?
When it's our own hard earned cash, we make better decisions on what to spend it on. We cut back on luxuries.
We stick to the basics. What we need, when we need it.
My friend Harry always said: "If I want to spend 50c, I have to have a Rand in my pocket". Very wise words. I learned a great deal from Harry, by the way.
As small business owners, we have to focus on our own sales to our own customers. Our service has to be better. The quality must be the best. We have to make a profit. No luxuries.
With borrowed money, if our product doesn't sell, we sit with a huge debt. Very hard to get out of that spiral, always downward.
We need a whole change of mindset.
We have to start small, use what we have and do what we can.
Getting paid for our services is vital to our well-being.
We can't afford to give credit. Or get it. That is another spiral that is a downward one. Very expensive to maintain.
Some people may use us as a cheap overdraft, if we continue to supply with payments outstanding.
Those people are leeches, not customers. Avoid at all costs.
Best to stay small, with a good cash-flow. No need to answer to a bank or lender then. We control our own destiny.
We can't afford to do everything for everybody. We need to stay in our own small "niche". Stick to our own knitting. Focus on our strengths, not our weaknesses.
If we can't afford to pay for what we need, we don't need it.
Bootstrapping is the best way to get your business off the ground and keep it in the air. Stay in control.
Learn more about funding and cashflow from the Academy of Small Business.
Helping us to be more successful Small Business Owners. It's well worth the small investment.
Or Read Pete's Blog - Lots of little "nuggets of wisdom" there. Even Small Business Ideas.
To quote the movie The Best Little Marigold Hotel:
"It will be alright in the end. If it is not alright, it is not yet the end".
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