5 Things to Know Before Starting a Business – Part I

I’ve made some major mistakes in business; this article contains things I wish someone had told me ten years ago.  To thrive in business, you must follow these lessons.
Hopefully you can learn from my mistakes, and maybe even pass the lessons on to someone else.

5 Things to Know Before Starting a Business (Lessons I and II):
I. Spend As Little As Possible
Spend as little as possible, but not too little. 
Please don’t use credit cards or unsecured debt to start a business!  The same debt that opened the doors to your business may eventually close the doors to your business.  The profit margins on most businesses are so small that you can not afford for those funds to go towards paying off debt.
With that said, there may be a time when you need to borrow, but your borrowing should be to meet the needs of your expanding customer base, and not from a mind set that says “if I build it, they will come.”
You can not borrow your way to the top.  You have to create your way to the top. 
If you have a good business idea, your customers will let you know.  Soon you will expand, and when you borrow, you will be able to easily pay it off.
With this said, you may have to save a good bit of your own money, before you can start your business, but this process will qualify you for success, and ensure that you trust what you’re putting your money into.
Additionally, not only should you avoid borrowing until you have the appropriate amount of demand, but you should always look to spend as little as possible.  Spend money from your profits, work to become profitable, and then you can increase your spending.  Buy only what you “must have” to operate the business, and create a plan to create profit as quickly as possible.
Once you’re profitable, you can make more purchases, but even those should be limited to what you need.  Your business should be a “lean, mean, debt reducing machine”.
II. Don’t Do It for the Money
In other words be willing to do it for free.  Work towards your passion!  I started a business in the fitness industry several years ago, and at one point I was planning to purchase two fitness centers. 
And although I love working out, a fitness business is not the business for me.  I would not do it for free!  I would not even consider doing it for free.  This is why I know you must follow your passion; don’t do it for the dollars.  What good is making money, if you’re making it while doing something that bores you?  Balance is the key to life.
Do work that you would do for free if you are to be truly successful.  I’m sure Michael Jordan would play basketball for free; no one would have to twist his arm to get him on the court.  What would you do for free?  I would write self-development articles for free.  …The e-mails that I receive from people who tell me how their lives are changing, is sufficient enough reason for me to write.
Although money is important, and a vital necessity in business, if your sole reason for being in business is to make money and not to serve people joyfully, it will be very difficult to have real success.
Lessons III-V will be presented in the next article…