Starting a business with no money down is something I don’t recommend. It actually tells me a lot about someone anytime I meet a person trying to start a business with no money. It shows me they may have fear, they’re lacking money-making skills that pay the bills, they have no confidence, etc.
Not everyone can be an entrepreneur.
Welcome to Mentor in a Masi. My name is Mike! I come to you guys every week to give you an overview of business, business development, mindset, and mentorship to help you along the way in different areas of your life.
Is starting a business with no money a good idea?
One of the reasons I don’t recommend starting a business with no money down is because you have to look at the mindset of starting a business first.
You’re coming out of scarcity. For someone that doesn’t have money to start a business, it kind of tells me a lot about the person to start with. Maybe they don’t have skills. Maybe they don’t have any experience in that field. Maybe they don’t have a lot of confidence. Maybe they have a negative mindset to money in general.
We have to change a lot of our mindset first.
We talk a lot about the psychology of things. We have to change our mindset first but starting a business out of fear is a big risk because here’s the deal.
The reality of starting a business
You guys see Time Magazine and Money Magazine and you see these people that are super successful. If I give you the statistics of 100 businesses, only four businesses out of a 100 actually make it after five years.
That means that when you go into business, you have to think about pretty much you’re going to fail because out of everybody, only four of them actually make it five years.
And the reason for that is because what happens is right now, and this has nothing to with just really big social media coming out and saying, “Be this lifestyle entrepreneur. Be the solo-preneur. Be the lifestyle where you’re sitting on the beach with a laptop on your lap and you’re working with a straw in your mouth, drinking a margarita.”
You see that on social media but what you don’t see is the 10,000 people that didn’t make it.
How many times do you see a guy on Time Magazine or Money Magazine saying, “Hey, I lost $200,000, I lost my entire savings. I went broke and I did all of this in five years.” You don’t see those people.
What you guys see is the one person that actually made it. Coming into business without any money is a horrible idea.
What to do if your serious about starting a business
I would rather you come to the business if you’re thinking about being an entrepreneur, which takes a special mindset, it takes leadership, it takes commitment, a lot of hours.
I would rather you get a 9:00 to 5:00 job because if we’re talking about starting a business with no money down, we’re also talking about a person who probably doesn’t have a job.
And if you don’t have a 9:00 to 5:00 job first, which I completely recommend doing first, now what they’re talking, this new thing is the side hustle.
My recommendation is to work the 9:00 to 5:00 and your day really starts at 5:00 PM.
That’s your side hustle.
5:00 PM onto 9:00 PM where you can put work into those fours hours and grind on something extra that’s making you a lot of money.
You need to learn how to invest because the first thing I would recommend is from the 9:00 to 5:00 job, that’s going to pay your bills, that’s going to keep you alive and then your side hustle, that money is where you’re going to put into savings.
When I say savings, I always talk about the investment side of things.
Opening up a checking account with some type of Fidelity or maybe Schwab, one of these other types of investment accounts where it can pull 30 to $50 a week.
30 to $50 a week, I want it automated over to an investment account.
That’s how you start saving up, saving up, saving up because again, if you’re trying to start a business with no money down, you’re going to put your friends, you’re going to put your family and you’re going to put yourself at risk because what if it does make it?
What if it doesn’t make it?
This is not a pessimistic video but it’s statistics. If 95, 96% of people don’t make it, yeah, sure you could be that one.
Sure you could be that person that makes it ultimately successful in business but the odds are against you.
What if you go for three months, what if you went six months, better yet, what if you went a year to three years and the money wasn’t coming in? What would you do?
You’d go through your entire savings if you had savings.
But what if you didn’t have a job to start with and you’re trying to get into a business like this? How could you possibly live?
My recommendation is always getting a job first.
That’s your Monday through Friday. That’s your 9:00 to 5:00 job that gives you a guaranteed salary or weekly pay based on hourly and then your side hustle, I want to be something that is a high-income skill set.
When I say that I mean, copy-writing, marketing, sales, these type of high skill sets, not going back to your normal type 9:00 to 5:00 work, doing it for a different company.
This is your side hustle, this is your way of getting entrepreneur out of the way, starting slowly and then just continuing to build.
What you want to do is wait till your side hustle income actually surpasses your 9:00 to 5:00. When your side hustle passes your 9:00 to 5:00, that’s when and you have enough savings, that’s when actually you can put more focus on the side hustle than the 9:00 to 5:00 and you can release the 9:00 to 5:00 if needed.
But I don’t want you to let go of your first flow and get a second flow and neglect the first one, which is your 9:00 to 5:00, while you’re trying to make it.
You don’t need to be an entrepreneur, you don’t need to be a business owner to make a lot of money.
There’s a lot of people that make a ton of money just working for another company developing. Because here’s the deal, even working for another company, you make a lot of money by talking to the upper management, owners and developing something that brings them business.
When you can bring to the marketplace value, extreme value to the marketplace, you will be rewarded for that.
You as an employee, talking to upper management or talking to the owners and saying, “Hey I want to make more money.
This is my idea of actually bringing more money to the company.” That’s how you make more money.
But you don’t have to be this business owner and entrepreneur to make a lot of money.
There are several people that are six, seven figures that don’t even work for themselves. That’s my recommendation for you guys.
Don’t start a business with no money down. You’re going to be in starvation mode. You’re going to be in risk mode. You’re going to be in a mode where you are, you’re working out of fear. That’s it, you’re working out of fear.
Get some money behind you, remember the savings.
Even if it’s 30 to $50 a week that you’re putting aside into some type of investment account and again, the most important thing is that you don’t physically take the money from your checking account and put it into an IRA or a self-directed account, that it automatically pulls.
Schwab does this, a lot of investment accounts do this where it will automatically pull on Friday, 30, 40, 50 bucks a week and put it into an account so you never see it.
Because when you automate money, automated money grows.
When you have to physically do it, it’s a burden.
Take care and leave any comments or questions you have below.