Do you have a great new business idea? Are you thinking about taking a loan to start a business? If yes, then you might want to read this first.
I have started multiple businesses in the last 20 years. And I have seen many failures and successes.
Based on my years of experience as an entrepreneur, I believe…
My question is…
Do you need a loan or a debt this early in your business life?
It is my belief that you don’t need to take a loan to start a business.
Every day I meet people who think they have the next big idea. They are looking for advice on how to get funding. And whether they should be taking a loan to start a business.
First, I ask them a fundamental question…
Why Do You Want to Start a Business?
I think we are living in the most interesting time in human history.
It is a prosperous time to be alive. A lot of money to be made. With the internet, anyone has the power to start a business. Reach an audience across the globe.
And with social media, you get to know about a new millionaire every now and then.
But, these times are marked with uncertainty along the way. What no one talks about are the people who failed. People who lost all their money. Businesses that went bankrupt.
Fundera conducted a study on small businesses’ failure rates. They found that:
- 20% fail in their first year
- 30% fail in their second year
- 50% fail after five years
- 70% fail in their tenth year of business
There are several reasons why businesses fail. The most common:
- A Lack of demand
- Poor management
- Cash flow issues
The failure rates also vary by industry. They also found that 77% of businesses who apply for a bank loan from a big bank get rejected.
According to a survey by the Federal Reserve Bank of New York, 48% of the startups didn’t apply for financing.
So, before you go taking a loan to start a business, think about your “why”…
Is it because you want to quit your 9-5? Feel trapped in your current job?
If yes, then starting a business may not be the solution. It could lead to bigger problems.
Not Everyone Can Run A Business
When you are about to start your entrepreneurial journey, there are a lot of factors that create pressure.
You need to be resilient. And be ready to face huge challenges. Be prepared to handle the mental pain that comes along with it.
You should have the ability to suffer big financial losses too.
Moreover, since you are thinking about taking a loan to start a business…
Maybe you don’t have the experience, skills, and knowledge needed to start one.
With that said, does that mean you can’t start a business?
I am not saying that. You definitely could.
But, here’s what I believe…
If you don’t have enough money to fund your idea, you may not be ready to face the challenges.
And that’s ok. You can always become equipped first. The best way is to reduce the financial burden from your shoulders.
If you could take out the pressure of funding entirely, you can spend more energy on your product or service.
Did I Think About Taking a Loan To Start A Business?
I never borrowed any money to start a business. I started with no money in order to generate income and revenue in my businesses.
Here’s what I think…The best person to fund your business is you. Click To Tweet
And if you are starting a business and you need to borrow money to start…
In most cases, it means that you don’t know how to generate revenue yet.
There are several skills required to succeed as an entrepreneur. Leadership, networking, sales to name a few. And if you don’t have the ability to sell or close to get customers, taking a loan will not help.
So, before you start a business, you should first focus on generating a steady income.
Learn how to generate revenue. Bring value to the marketplace in exchange for money.
How can you do it?
Well, you could keep doing your day job and build your savings. Once you have enough savings you could start your business on the side. If it works out, then you can quit your job and live your dream.
But, today the world economy is unstable. The market is changing rapidly. No job is secure. To top it all off, the technology is evolving on a daily basis.
The world does not work the same way it used to. It is being automated.
We are moving into a skill-based economy from a job-based economy. The gap between the rich and the poor is growing every day.
Is there a better way?
Yes. You could do exactly what I did.
Develop the right set of skills. I call them High-Income skills.
And if you are equipped with high-income skills, you can easily fund your business.
How? Because these are…
Skills That Pay The Bills
These skills take care of your expenses. You don’t have to worry about paying the bills. You take the financial headache out of the equation.
With high-income skills, you don’t stress out about your finances. A high-income skill can help you earn money. Fast.
And you can have all the money you need to fund your business.
High-income skills are skills that make you at least $10k a month.
And the best part is that these skills are only dependent on you and your ability to produce results.
You bring results to the marketplace – You get paid. Simple.
You could start any business. Expand into any market. In any country. And you will succeed.
This is what I call having unshakeable financial confidence. At that stage, you will not be thinking about taking a loan to start a business.
When you are financially confident you only rely on your own skills. No matter what happens to your business, you can bounce back. You are financially secure and stable.
Here’s a list of high-income skills that you should consider adding to your skillset.
Using these skills I’ve cracked the code on building personal wealth. And started several multimillion-dollar businesses.
That is how I developed the concept of The Wealth Triangle.
If you follow the wealth triangle, you will…
Unlock A Lifetime Of Financial Confidence
Simply put, the Wealth Triangle is a step-by-step guide to creating wealth, keeping wealth and multiplying it.
I define it in 3 stages:
- The Power Stage – Once you have mastered a high-income skill, you attain a certain power. You become the most powerful version of yourself.
What do I mean? You have the power to do what you want. And live how you want to live. In other words, you have full control of your income.
- The Profit Stage – Then you reach a stage where you can predictably and steadily increase your income. If you feel like it, you could start a scalable business that is suited to your skillset.
What is a scalable business? A scalable business is a business that does not require much investment to grow. You will never have to think about taking a loan to start a business.
- The Possibility Stage – This is the absolute elite level. This is the last stage. The stage where you multiply your net-worth and your significance.
This is where you learn to make high-return and low-risk investments. Create true wealth. This is the stage where I am at right now.
Having gone through all the stages myself, I can tell you…
You don’t need to be taking a loan to start a business.
The Master Key To Success In Business
If you go into business without proper planning and the right perspective, you could lose all your money. Just like that. But, it’s not all bad news.
In the world we live in today, the opposite is also true. You also have the ability to make a large sum of money. Fast.
Ten years ago, I wrote a book called FU Money.
This book has sold hundreds of thousands of copies and has helped a lot of people.
Since that book, I’ve built several other multi-million-dollar businesses.
It’s been an incredible decade. This decade has taught me that it’s my legacy to unlock the financial potential for others.
This is why I wrote a new book called “Unlock It”.
This book is the master key that will help you develop that unshakeable confidence and change your life.
In this book, l take you step-by-step through all the stages. You will learn actionable strategies that you can start implementing right now and achieve success.
You will never have to worry about taking a loan to start a business. Instead, you will learn to unlock long-lasting wealth.
The book will also teach you to:
- Start or scale a side income so you can set your own hours, make as much as you want, and work from anywhere you want to.
- Leverage your natural strengths to reach higher levels of success.
- Achieve wealth, success and significance – for the rest of your life.
For most people, wealth is tightly locked behind a “door”. In this book, I give you the right key that can help you open the door.
All you need to do is grab the key and unlock the door to your success.