Why You Should Personally Fund Your Small Business

business-loansIf you’re starting a business and you’re taking out a loan. Don’t do it.

You have dreamed about starting a business and having the freedom to live the lifestyle you’ve always wanted. Well, it takes a lot of effort to achieve that dream.

As I started to create a modern marketing company in 2009, I realized it took a solid business plan and money. Most importantly… Money. Today, there are various ways to secure funding to back your business concept, but is it truly to the way to go?

My answer is “no” based on my personal experience. As I researched and analyzed a funding strategy, I heard Mr. Mark Cuban say one statement that stuck with me – “If you’re starting a business and you’re taking out a loan. You’re a moron.”

That’s right… The guy who makes money funding new ventures and boasts his show Shark Tank, admitted that he wouldn’t take a loan to start a new business. I questioned this statement for days at first, but then I realized how true this statement was.

Once you receive the loan, you not only have your expectations to meet, but you have the expectations of your investor(s) or financial institution. This can be a great thing if you like a challenge, but it can turn your dream into actual “work” very quickly.

You don’t have that much pressure if you fund your business. Yes, it’s all on your shoulders, but the only person you need to answer to is the person in the mirror. That can be more relaxing than anything as you move forward.

How can you fund your own business? I’ll provide numerous ways to do so in a future post. Until then, I recommend saving and creating a quality business model.

Comments are closed.