“That’s Great Advice But I Don’t Have Any Money”
Let’s talk about the step that all the books on starting your own business don’t talk about.
Firstly, let me set the intention for this piece and all those to follow: I want to help you. For free. I’ll be as honest as possible about some of the problems you’ll face when you’re starting a business (‘starting’ being the first 18–24 months) and then I’ll make time available here for you to book a 30 minute session just to talk.
I promise you there’s no hidden sell here, I genuinely just want to help you avoid the mistakes I’ve made and shorten your path to success. Disclaimer: I’ve started, sold, closed, grown and shrunk a number of businesses locally and internationally, some brick and mortar, some in the tech space. LinkedIn here.
I so desperately wish, when I was starting my businesses, that I had access to someone who had been able to relate to me at that specific time. At the time when I had no employees, no funding, no money, no app, no version 2.1, no marketing budget.
All the mentors we have are successful. They’re at least a decade ahead of where we are in our own business and, if you’re anything like me, you’re probably embarrassed to admit to these incredibly high achievers that you have absolutely no idea what your cost of acquisition is because you also have absolutely no customers who weren’t at your wedding.
I heard recently that the mentors you work with should be 12–24 months ahead of you in the learning cycle, which really made sense to me. Odds are these people would probably have experienced the exact same problem as you and have either just solved it or just failed at solving it. I’m that guy.
So my promise is this: I’ll be vulnerable. I’ll tell you where I’ve fucked up and I’ll tell you what I’ve learnt. I’ll do my best not to be prescriptive and, for those that I end up speaking with personally, there will be absolutely no judgment. My best intention is all that you’ll receive. If I can’t help you I’ll try point you in the direction of someone who will.
With the above in mind, let’s talk about money. Not the sexy funding round, not the revenue pouring through your business, but the ‘where am I going to get enough cash to pay for a website’ money.
Too many books on business skip this first part. To be blunt, if you don’t have some money, you’re a non-starter. You need to get some from somewhere and this is where I’d suggest you start:
- the people who love you the most;
- the people who like you the most;
It’s extremely humbling asking for money. Personally, I hate it. It’s such a vulnerable experience exposing what you believe to be an amazing idea to someone who may not just tell you it’s shit but may also prove that they think it’s shit by not giving you money, even though they love you.
This is the choice you face though — and it’s a choice you’ll face a thousand times on this journey — either be vulnerable enough to ask for it or go back to what you were doing before. There is absolutely no shame in either one.
Asking for money, no matter who you ask, will require bravery but I’m here to tell you that regardless of the outcome it’ll be the most liberating thing you ever do in your life.
The reason is that you have to actually be vulnerable with yourself first, which means you have to admit that you want to change, that you need to (have to!) start this new venture and that you simply can’t settle for a life less than the one you believe only you are capable of living.
So how much money do you need?
If you’ve considered a business idea and you’re reading this I know you’ve done some rough maths. You have a figure in your head — it’s the one where you do almost every single thing in the business and have only the bare essentials to help you look legitimate. That’s how much you need. I promise you don’t need more, even though it would be wonderful to have some extra room the breathe. If you’ve done this exercise already, I’d encourage you to relook at what you wrote down and start culling absolutely anything that seems remotely excessive.
Next week I’ll touch on why it’s so important to operate on a stringent budget during the early stages and how the ‘Mantra of MVP’ (I’m going to trademark that) should inform all your decisions in the first few months of your business.
Here’s the link for anyone this resonated with and who wants to chat in a safe, judgment free space: https://calendly.com/businessishard/business-is-hard-chat
J.W.
