Thursday, May 19, 2016

Do You Have to Have Money to Make Money?

An almost universal axiom we hear many business people say is "you have to have money to make money."  But is this true?  I'd say both yes and no.

If you have vision, expertise, inside information, insightful education, passion, and a host of other factors you can definitely make money without money (or capital).  If you have a good product, service, or even idea money will be drawn to you.  I have personally done this my business career.

At some point you have to invest money to make money. You can start a business with no money and sell to generate money.

However for the business to expand you will have to invest money into it. I think that's the stage beyond metaphysis that people
are alluding to with that statement "it takes money to make money."

Things start with an idea and at some point needs capital. The best ideas need the most capital to reach their potential. That's why we have capital markets.
Google was a great idea expressed in a college term paper. The founders created it on stage servers. The idea got some seed capital from angel investors/venture capitalists. They started selling ads and data. They grew extremely fast and eventually did an IPO. 

As a person who has started two businesses with no money using free library computers paying me more than my old corporate jobs I understand both sides. On the other side people I do see people who hold themselves back doing business because they don't want to invest in marketing, staff, etc being tight wads.

The people I've seen running successful businesses are very cautious with how they spend money but once they see how a ROI will come thru they will invest money to make money. But I understand knowledge and contacts can help you overcome the lack of capital problem.

About the Publisher of Minority Business Financing

Minority Business Financing is Published by Kamau Austin. Kamau is a popular Blogger, Writer, and Internet Marketing Professional helping small businesses grow more profitable businesses online. If you need web design, blogging, search engine or social media promotion contact him at Search Engine Plan

Kamau's Qu!ps reaches over 30,000 web users a month through it's Blog and Social Media Promotions. For Advertising Opportunities visit our Advertising Page

No comments:

Post a Comment