by mg Robbins

Created on: May 29, 2010   Last Updated: June 01, 2010

   With determination and a grit to succeed. Money is tight. The economy is a mess. The dollar wobbles as if printed on Jello. So, what is an entrepreneur to do? First, ignore the naysayers.

    Depending upon the type of business, the amount of start up money may not be as important as the quality of service or product you provide. All the money is the world won’t float a business that fails to back warranties, guarantees or perpetuates bad ethics. Success, ultimately is how you produce, not how much money you have.

    The best advice, start small. Start by working in the field to decide if this is your passion. Second, learn everything about the business. What aspect do you like best and specialize. Target your market. Consider starting with an online business. You operate from your home - no expense there - and you get a tax write-off for space, telephone, internet costs, all in your favor. If product is involved, store items in a spare room. As the business grows you may need to rent a storage area. By then you have generated enough money to afford the cost, and at years end there is another tax credit. So far, you have financed your business without paying interest rates on a loan.

    If you choose to seek outside capital, start up money need not be in the thousands, millions or greater. Dell Computer, Inc. started with $1000. In the 60s a friend started with a mop, broom, bucket and $144 for a cleaning company. It was the determination to succeed that catapulted Dell into a multinational company worth millions of dollars. The friend met her husband cleaning his office and married. There are hoards of online articles advising were and how to secure grant and business loans; just Google 'starting a business without money.' There you will find expert advise for city over state programs and grants that require no repayment. These seem the ideal.

    Do not become discouraged, and you will. Keep your focus, the goal you set when you started upon this trek. People will say no, chalk it up to a learning experience. If you opt to apply for a loan, fill out applications in great detail. Lenders want specifics. They want to read confidence oozing off the app page. Remember, your first hard sell is to the lender.

    Recently a friend forwarded her business plan for review. It was 10 pages typed in Ariel 10. That was specific. You are more likely to secure a loan with a business plan that defines your idea, tooth and nail (so to speak). It demonstrates order, calculation and professionalism. Having collateral, should you default on the loan, is better than an unsecured loan (harder to get with higher interest rate). Avoid personal loans if you want to keep the friendship or set them up through a bank just as you would an outside loan. Separate friendship from business. If you cannot, don’t walk - run from this option.  Avoid taking on a business partner. Your idea, their money or collateral. They may also have plans to take the business.

    Bottom line, if your passion is to own your business, you will find a way and the energy (green as well) to make it succeed. Remember, “If at first you don’t succeed, try try again.”

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