A few years ago a person could purchase a $300,000 with no money down, no income verification, and a low interest rate. At that time it appeared to be a great way to increase home ownership, but as we know thousands of people started walking away from their mortgages! They could walk away because they literally had nothing to lose!
Personally, I feel this is a big reason a lot of start-up businesses fail.
Imagine that you have a great idea for something and you start collecting “start-up” money from friends and family. A few months go by, you have burned throug the money you collected, and you realize that your great idea wasn’t so great. Chances are you will probably walk away from the business because you have no skin in the game.
I see this exact scenario play out day after day. My suggestion is that you do not go to friends and family first for money…I suggest you start your great big idea with your own capital and rescources. You will be more motivated to succeed…more motivated to work…and more inspired to accomplish your dream.
Instead of thinking of a great idea, then money, and then action; Think of the idea, start the business with your money, create success, and then if you need to expand ask for some money.