“Would you start a business on a loan?” In short: no.
If you can’t generate enough revenue to get seed money, how do you plan on generating enough revenue to keep your business afloat?
There are other ways to get going. In truth, if you need a loan to start, you might not be ready to have a business.
Maybe you want to argue. Perhaps you wish to say, “But look at the big-shots who made billion-dollar empires with no start-up money!” Don’t do that. You’re not the exception to the rule. Don’t compare yourself to the few successful entrepreneurs who did it.
Why? Because there have been millions of others who tried to do it that way and failed miserably. They ended up with debt they couldn’t handle and failed businesses. How many businesses fail? 20% fail within their first year, 30% in their second year, and 50% in their third year. But not even those who make it to 10 years are safe. 70% of businesses fail in their tenth year. The reason? It’s usually because they didn’t adapt to keep their revenue generation up.
So don’t rush into something that could cripple you in the long-run. Learn important business acumen and revenue-generating skills before you start a business.
The reality is that loans can be used to catapult a prospering business to the next level. But what do they do for a business that doesn’t have a track record yet? A business that doesn’t generate revenue yet? They’re a temporary fix for a bigger issue.
What Loans Actually Do For A Business
Loans are temporary solutions to permanent problems.
They give an influx of cash, so it feels like the business is thriving. But they aren’t solving the underlying need for that cash: not knowing how to generate revenue.
If you knew how to generate revenue, why would you need a loan? Why would you need someone else’s money?
Loans are a Band-Aid on a stab wound.
Most of the time, you end up stuck with debt that will weigh on you for years to come and hinder growth.
Now, can loans be useful in business? Absolutely. But not at the beginning. Getting a loan at the beginning means you have no money. But, more importantly, it means you don’t know how to get that money. Generating revenue is the backbone of a business and an important fundamental.
Getting an influx of cash won’t teach you how to generate revenue. You’ve solved your problem for how many months? Maybe a year? But you won’t have long-term success. Having more money won’t solve that problem, but it will make it worse.
Once you burn that cash, what will you do?
Don’t cripple yourself and your business with loans right at the beginning. Dan often calls himself a moron when talking to his students for attempting to start a business with a loan. He learned this lesson the hard way.
Where Dan Started
Did you know Dan Lok made this same mistake? He borrowed money from friends, family, lenders, credit cards for his thirteen failed businesses. He ended up $150,000 in debt before he became successful.
In his culture, owing money to relatives comes with a lot of shame and guilt. He was crippled by these feelings and didn’t know how to pay them back.
He didn’t know how business works, and he didn’t have the ability to make money. Because he didn’t know how to generate revenue. Yet.
He didn’t know how marketing or sales works. He couldn’t even read a financial statement. When he reflects on this on this time in his life now, he says, “That’s how much of a moron I was.”
His businesses weren’t the problem – he was.
Instead of giving himself the skills to run a business and generate revenue, he tried to jump in with both feet.
He had to learn how to develop skillsets. So he built the ability to generate revenue through communication, using copywriting and closing.
He built a copywriting business that morphed into an agency. Every day, he worked to grow his business into the empire it is now. Offering training, courses, and so much more, which led to a sustainable business model.
So what was the difference? He founded his copywriting business on a High Income Skill. He learned how to generate revenue – a fundamental of business. Starting his business from a point where he was generating revenue taught him business acumen that allowed him to grow.
Now people look at him now and say, “Dan has the Midas touch!” That’s true now. But it wasn’t then. Then, everything he touched turned to waste. And all this because he simply didn’t know how to make his businesses work.
What You Actually Need To Start A Business
Spoiler alert: starting a business is not for everyone. Not just anyone can take out a loan and build a successful business. But people who give themselves important business skills are the ones who are setting themselves up for success – just like Dan.
To start a business, you need to have the ability to close and sell. You need to be able to self manage and lead. You need to be able to develop systems if you want to be successful as an entrepreneur.
You won’t know everything. Nobody does. So you don’t have to know all the details, but you need to have some fundamental skills.
Learn how to generate revenue first so you don’t need a loan.
How You Can Start A Business Without A Loan
So where do you get start-up money if you’re not using a loan? From a High Income Skill – just like Dan. These skills are affordable to learn but have a high return on investment. They’re skills that can yield 5-figure monthly incomes.
High Income Skills are web development, business writing, web design, digital marketing, creative skills, digital content creation, high ticket closing, and copywriting.
To run one of these businesses, you only need a laptop. They can be done from anywhere in the world, as long as you have access to the internet.
But what is the key to using a High Income Skill for the start-up costs of your business?
They have very low start-up costs. You just need to learn the skill and start bringing in clients. You won’t have a ton of overhead and administrative costs. So you can set aside part of your income to go towards starting your business.
But the bonus is that these skills also give you fundamental business skills and acumen. These skills can be the foundation for any business from here on out. And they are revenue-generating skills.
Now, do you know how your business is going to make money yet? Do you know the fundamentals of generating revenue?
If the answer is to these questions is “no” or even a “maybe,” then you need to consider if starting a business right now is the right move.
You should take some time to learn these important skills. Once you know how to make money, then you can build the start-up money to launch a larger business without a loan.
Sure, you could take out a loan and hire others to do the work for you. But if you don’t understand what they’re doing, then you don’t understand your own business. Outsourcing only works if you have a grasp on what you’re outsourcing.
Also, you’ll be lacking the business skills and acumen to grow your business. You won’t have the experience of getting clients and generating revenue yourself. You’ll be completely relying on others to build your business. And no one is going to care as much about your business as you.
So don’t jump in with a loan. Take the time to learn the fundamentals. It’s the only way to build a solid business designed to work for you.
Today, we’re going to focus on High Ticket Closing and copywriting. These two skills are both revenue-generating skills that are important to the foundation of a business.
Using High Ticket Closing
So what is High Ticket Closing?
This is a form of selling where the closers only work with high-end products or services. But they aren’t typical salesmen and avoid the traditional, slimy sales tactics that many salespeople find themselves falling into.
They don’t chase products or clients. They are never desperate, clingy, or needy. And they don’t deal in volume.
Instead of selling five hundred $100 products, they sell five $10,000 products. Then, they take a dividend for each sale.
To be a High Ticket Closer, you need to learn how to connect with high-end businesses to let you sell for them. Then, you’ll need to find high-end, qualified prospects to pitch to.
There is an art to being a High Ticket Closer, but it’s an excellent way to build start-up money for your business. Being a High Ticket Closer also teaches you the foundation of appealing to people through marketing and sales. It’s a critical business skill.
So if working on the phone to be a High Ticket Closer is not for you, then you may consider being a High Income Copywriter.
Copywriting is closing in print. Copywriters use words to generate sales and leads. It’s a skill typically used more by introverts, but it’s a highly effective and important business skill.
Copywriters know exactly how to appeal to their readers. They can hit on pain points and offer solutions in one sentence. This makes it an excellent skill to be used as a foundation for businesses.
They usually work with multiple clients, so you can build your business network while generating revenue. And they can earn a 5-figure monthly income with very little overhead.
How To Use Your High Income Skill To Start A Business
So once you learn a high income skill, you can start a business with very little capital. You won’t need a loan. From there, you need to start thinking like a millionaire. Treat your money differently – as an investment.
So once you start generating revenue, you can use that to fund your business. But only once you have a model that works. Or an offer that works. Once you build your business to a certain level, then you can get a loan to take you to the next level.
But leverage your skill first to get you to that level. Don’t jump in with a loan.
Don’t think that a loan will solve your problem when you lack leadership skills.
And don’t think that a loan will solve your problem when you can’t sell your way out of a paper bag or lack of confidence.
So do you want to learn a High Income Skill so you can start a business without a loan? There is a skill that will last through the post-pandemic world and allow you to be your own boss while generating revenue.
Are you ready to learn the skill that helped over 1,200 students earn top dollar?
You can access your free training today so you can be ready for your tomorrow.