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Last Update: Saturday September 18, 2021

That idea of yours is going to cost you some money!

Have you saved some money?

  Four Steps to start and run All of us
Step 1. Initial Idea $
Step 2. Start-up $$
Step 3. Incubate $$$
Step 4. Sole proprietor $$$
  Four to run and grow a business orngeldy.gif
Step 5. Employer $$
Step 6. Growth $$$
Step 7. Sustainability $$$$
Step 8. Exit at the top $$$$

Key Questions about Money in Step 2

1. Focus on how you order your life.

Who has money within your industry?  How are you doing retiring your own debt?  No debt?  How are you coming with your savings?  Do you read about the work within your discipline everyday?  Are you doing key word searches about some aspect of this work, using the Internet, everyday?

2. Focus on relations and symmetries

Have you made lists of family, friends, and others who might find your business concept of interest?  What other groups of people might be interested? Who have you asked to join you in your impossible dream?

3. Focus on the dynamics of your day  

What is the best and highest use of your time?  How close is the product and service to be sold?  What do you have to do to make that first sale?  How can will you leverage that sale to make another?  Have you asked people if they know of anybody who might be interested in buying your product or service?

4. Focus on integrating it all:  Be faster, cheaper, better

How can you produce your product faster, cheaper and better than it has been done before?  How can you increase your margins at every step of the way? 

The homepage for the section about Money


Money at Step 2: The Start-up                Overview - orientation

Savings, Family-Friends-and-Fools

Asking people for Money.  People with a strong idea and expertise within that  discipline can raise capital from others.  If you want to involve somebody else's money, it will either be debt or equity capital. 

You need to be driven.  You have to know that you and the business will succeed.  If you are, ask somebody for a loan or to participate as an equity investor.  The responses are very important parts of your reality therapy and your basic understanding of business.

Many of us have turned to family members.  Think twice before asking friends or family members to invest in your business idea.  Most often we might get a loan and sometimes the terms and conditions are harsher than a bank.  Be prepared.  It's reality.

When capital is pooled from many family members, put it in writing and know your agreements.  There are many businesses profiled where family members work within the business. But the businesses listed here are truly family enterprises where the identity of the family is very much tied to the business.

Keep working on that business plan.

The third category, fools, is reminiscent of that old saying, "Fools and their money are soon parted." Even be careful with the naive. You want to start out right and you need to do the due diligence and proof of concept from the sweat of your brow.

Some successfully bootstrap their start-up venture.  The goal within this step is to make your first sale.  It is a proof of concept and it might be a process that you can rapidly repeat.  If you have allowed enough margins within your first sale, you can immediately apply those margin dollars to making a product or performing a service.

Get to know the people at your bank. Give them working copies of your business plan; and based on your savings, ask them for an initial line of credit, then begin building on that line. Ask for a review at least every quarter. Always bring an updated business plan.

Do all of the above and always check the information in the step before and the  next step.

About the Online Workshop -  Case Studies

Soak up other people's stories - a Metaphorical Way of Learning

Ask questions and get inside the very essence of the people, products, and processes that you need to build this business.  Look at how others have done it.  There are eight case studies to survey.  

Go to The Online Workshop  - Case Studies for more....