Growing a business without start-up funding involves a simple equation and it’s what business owners and true entrepreneurs have been doing for centuries.
So forget seeking out investors, start selling products that people want and make a profit from your sales that you reinvest into scaling up the number of products you have available and sell…. as I told one of my daughters this morning as she came to me asking for investment in her new business idea.
“If you buy one thing, sell it and make a profit of $1 then reinvest that dollar into two things and make $2 then reinvest those dollars into four things and make $4 then reinvest those dollars into eight things and make $8 dollars profit and then reinvest that into 16 things and make $16 then $32 then $64 then $128…you see the pattern. It’s not about start up funding, it’s about figuring out what works, selling product at a profit and then scaling with the profits reinvested. That’s real business because the decisions and profits are yours and you are not beholden to an investor who isn’t in it because they like you, they want to get their share of your pie. Growing a business is a simple equation… profitable sales, reinvested.”
I love my daughter and will of course support her when she needs it, but that support comes in the shape of advice as well as cash!