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My mentor taught me that someone who is starting his first business should not have a lot of cash. He believes that a lot of cash can harm you more than help you. I agree with him.
If you are starting your first business now and you have very little cash, that is a blessing! Why?
You will learn to work from home. Do not rent office spaces yet!
You will learn to use what you have. Do not buy new stuff yet!
And it will be a fantastic story to tell 20 years from now that you started your gigantic company in your living room with only Php10,000, right?
First Businesses Usually Fail
This is another reason why having a lot of money at the start of your business is bad for you.
When you start your first business, you fail. Yes, it may be bad news, but always remember that failure is not God's Rejection, but God's Redirection.
And not ALL first businesses vanish into thin air. There are some who will survive, but will be revised, redesigned, rebuilt,...
My Story of Failure
Once upon a time, and not a lot of people know about this, I started my first business. Back then, I was so much into online shopping. EBay and Multiply were my favourite websites. One time, I came across a seller that offers a "reseller price" when you purchase wholesale. Since I had no money then and thought of getting into business, I applied for a bank loan. I have always believed that the only valid reason to get a loan is for business, period.
When my first loan was approved unexpectedly, I was very happy. Since the required minimum to avail wholesale was not that much, the released amount was more than what I actually need for the business. So with that, more than half of my loan only went to buying personal unnecessary stuff (shopping!).
Here is where the other part of the problem was. Since I made a purchase online, I did not know how the products actually looked. Yes, they were beautifully displayed online (thanks to Photoshop), but when I got them, I was not very pleased. These were branded overruns. I was not able to determine the quality based on the texture, the kind of material used, the badge, the stitches and the actual sizes because I only saw them online prior to my purchase. Honestly, I had a hard time selling them. I sold a few, but I gave away most of it.
Looking back, I did not research. I never studied who my niche market would be, or how will I sell these stuff. I also did not know anything about the business because I have not bought or worn overruns prior to that. Personally, I do not even shop that much clothes before. I did not even look for a mentor who could guide me.
It was a leap in the dark.
I literally "jumped" into it blind.
Yes, my loan just went to nothing.
Focus on Your Gift, Not on Your Cash
Having big cash and little business sense is a very dangerous mix. Because you will be in a hurry to "plunk" it into your first business, not understanding that first businesses usually fail.
If you stick to your core gift, you will be able to find a business that does not need that much cash.
My first business that I could consider successful is this blog. Why? Because I believe that writing is my core gift. When I see "LIKES" on my blog posts, or an increase in page views, or added income from clicked ads, or when I receive messages from readers telling me that my blog have helped them, I feel happy and fulfilled.
How much capital did I need for this business?
Nothing. Zero!
I also believe that our core gift will not only bless other people, but it will also bless us. Because I am such an investment advocate, I do not only WRITE about financial planning, but actually DO financial planning for people who want to invest and make their long-term dreams real.
Through being a licensed financial advisor for Insular Life, the No.1 life insurance company based on NET WORTH and the largest in the insurance industry, I offer products that are tailor-fit for every client's need. Through helping them realize their dreams, I am making my own dreams real. Yes, it has been financially rewarding.
Because this business has prospered me, I am able to prosper others as well through child sponsorship and giving money to do God's work. Remember that God lent us His money for a purpose, and that is to help and serve others.
My Second Business Needed Only P30,000
My friend from the Truly Rich Club asked me to become his business partner. The initial capital investment was only Php30,000. And since everything will be equally divided between the two of us, the expenses and profits, I only needed Php15,000 to start our direct selling business.
Since it provides active income for dealers and passive income for us, we spent mainly in marketing. Since what we are selling is organic, I also love the fact that our business is also helping our farmers through increased in production.
Then one business opportunity led to another. Earlier this year, we had the chance of growing our organic product portfolio with another business deal from Davao City. This time, we can cater to anyone, anywhere, without restrictions. Through word of mouth and social media, our business has the potential to grow nationwide. This would mean providing extra income to the masses and our farmers.
Recently, through social media, I was led to another business that is still connected to our organic products. We are venturing to agricultural tours in the Philippines through Costales Agritours and our first stop will be at Ilocos Norte happening on August 31 to September 2. This will enable us to learn new things, grow our network, help more people earn on the side by being our retailers, and support our farmers due to increased productivity. My new agribusiness partner said that we will be going around the country for agriculture tourism and I am just excited to do that. I know that the best is yet to come!
Start Your Business Without Much Cash
What is the winning combination of entrepreneurial success?
A lot of passion and very little cash!
Because "very little cash" will force you to be more creative, more resourceful, more imaginative, more persevering, more sacrificial -- things needed for a great entrepreneur!
There were horror stories of kids of very wealthy parents who started business with the help of Daddy's millions and just lost them. Because money is too easy for them. Money isn't valued. So they are careless with it.
Later on, as you grow in your business skills and you begin to taste small successes, that is the time to borrow money to expand your business.
May this post be helpful for budding entrepreneurs. Be very blessed!
P.S. The COSTALES Agritours - Ilocos Norte Trail will be held on August 30 to September 1, 2015. We are committed and focused to provide best-in-class Educational, Recreational and Agri-Business agritours. Let us support Farm Tourism and help us in our inclusive growth agenda. For inquiries and reservations, you may contact Ms. Ena Jane Javier at 0936-938-3167 or you may send an email to costales.agritours@gmail.com. Thank you very much.
