No Money To Start A Business? No Problem."Only Morons Take A Loan"

According to an interview on Bloomberg Report, Mark Cuban clearly stated: "Only Morons take a loan to start a business. There are so many uncertainties when starting a company why make owing someone money a certainty?"

Great point!

So, what do you take away when one of the highest respected professionals in show-business tells you loans are stupid? He is known for his business acumen and his direct involvement in making financial investment in companies!

You take a step back and realise that if you put in the effort, you will get the output you are seeking. Start-ups fail not because the product or service is not ideal, but because the people behind the product or service are not sales driven. So first and foremost, if you are investing in anything, invest in a proper sales team. These people are literally the driving force of your company.

Here are some thoughts on how to succeed in your business without going into debt:

Have a strong management team: Yes, you may have to pay more, but they will save you money and time in the long run. Imagine Richard Branson doing his own bookkeeping. Does that make any sense whatsoever? No. He hires people to do those jobs so he can focus on the job he is supposed to be doing – expanding his business. If your expertise is in product design, hire those you admire take care of the other aspects of the business so you can focus on your own forte.

Do not spend money you don't have access to. No one cares if you are drinking Starbucks, what you drive, or write with. If you can't afford it, don't buy it, don't do it. The number of meetings I have attended where I have witnessed people driving high-end cars but can't afford put food on the table is truly ridiculous! You can't eat your car! Being frugal is cool!

Give to Get: There is nothing wrong with giving a free service or product. Give to get. Word of mouth is more powerful than any marketing campaign. Give samples, create contests for social media so the product or service gets exposure. The more you give, the more you will get back. The key to safely offering free giveaways is to know your “lifetime customer value". If you know who your customer is and offer them the free advice or product, they will retain their relationship with you.

Barter System Works: People love to feel they are getting a deal, and love to not have to pay for something. If you need a computer and a desk perhaps you can offer something in exchange. As well, drive around...there are often used goods just sitting around waiting to get picked up. Swallow your pride. The more you save, the more you have for the things you need.

Starting a business requires self-control, discipline, passion for what you are doing and ingenuity. Confucius is constantly quoted "Find what you love and you won't work a day in your life" But if you are spending every dollar earned, there is no doubt you will hate your job as you will constantly be chasing the next paycheque… and once you are spinning in the rat wheel you will be unable to make your dream a reality.