Today we’ll talk about another motivational myth that states you need to make a big investment to start your business! Do you want to hear a statistic that has always bothered me? According to the (US Census Bureau), 1.8% of women-owned businesses reach the million dollar mark, while 5.4% of male counterparts reach the 7-figure goal. In case you missed that, there is a 300% better chance that a male-owned business will reach the million dollar mark. A little depressing, eh?
One of the main culprits of women playing small in business points back to lack of funding. Only (27%) of women owned businesses seek business funding while (78%) of their male counterparts do the same.
So why am I telling you that the need to make a big investment to start your business is a myth?
If you find yourself in the situation where you have it all figured out and you think the only thing you need is to make a big investment to start your business, think again! So if you recognize yourself in these words: “I know exactly what I need to do. I know what marketing I need. I have my programs all planned out. The only thing I need is money. That is the only thing that is holding me back.”, then the following advice is especially for you!
So if you feel that you need to make a big investment to start your business, I must say “Nope, that’s not what you need!”. What you need is to find out how to get your business model to work systematically, and then you apply funding to grow something that is already working. If you make a big investment at this point in your business it would be one of the biggest mistakes you could make. You still need to learn the same lessons, you need to learn the same skills, playing with $100 as you would if you had a $50,000.
Making a big investment to start your business is not what you really need!
After the end of a year in business, the difference in the two scenarios would be you will probably still not be rich in the $100 scenario but you would have some great experience under your belt, and in the loan scenario you would be $50,000 in debt and have the same business experience under your belt. What would you rather do?
It is so tempting to think a big investment is necessary to start your business. You might think, “If I just had $50,000 to play with, I would be able to really get this business off the ground.” The myth that you need to ensure a next big investment in your business to start is just that; a myth. Once you have figured out how to run your business, what products sell well, and how to market your products, you are ready for an investment. But in the beginning of your first business, making a big investment is usually not the way to go!
So I challenge you to stop believing in the myth that you need to make a big investment to start your business and try to focus on spending time working out the kinks in your business model instead…and remember to play BIG in your Business!