I have always been an advocate of Entrepreneurship, and starting a business. In fact, I have many articles on Starting a Business. However, I have come to terms with reality and I discovered that starting a new business is not a sure way to becoming rich.
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So did I say that Starting a Business won’t make you rich?
In fact, in this short article, I will show you why only a small percentage of Entrepreneurs become successful and prosper.
You must have been told in different seminars that you needed to start a business in order to defeat poverty, but that might be very wrong!
The Reasons Why
There are a few reasons why starting a business may put you in so much debt that you will need to play the Squid game in order to gain a chance of repayment.
Now basically, why am I writing this article? I have not written an article in weeks, and at the time of writing this article, the clock says 12:22am, and I have to complete my school project.
This idea just came to my head and I was like “No way I am letting this slip off”, because I knew that YOU will be needing this information.
- It takes time to make money from a business
- You need money to make money
- You need skills to make money
- You need to have good contacts to make money.
Now, I will begin to explain each of the points above one by one.
But before you continue reading, please do me a huge favor. If you enjoy this post, please share it with your friends after reading it, because I want them to learn too! And say Hi to them for me lol.
#1: It Takes Time To Make Money From A Business:
Most businesses take at least a year to start making a profit. If you have no savings, how do you pay rent, buy food and have heating for a year? If you are poor, you need to get money this week – not the promise of money in 18 months. Worse, you are probably already working long hours or have caring duties – so how do you fit it in?
#2: You Need Money to Make Money
Every business needs money to survive and thrive. If your business runs out of cash flow, a countdown to failure has already started. And because of the fact that money is not unlimited, business owners and entrepreneurs tend to ‘manage their money well’, which is shown in their unwillingness to spend money or invest.
However, it’s one thing to be frugal and manage your budget wisely, and it’s another thing to be a cheapskate and refuse to spend money even when it makes sense. In fact, quite often when people think that they are saving money they are actually being foolish, and are hurting their businesses.
Wait. What if the business owner in question does not have money?
#3: You need skills to make money
Most businesses require skills. At least, you must know how to sell. That’s a skill!
If you are from a poor background, your access to education is often very limited. In many countries, it might well be limited to ‘none at all. While you can start a business with little education, you are far more likely to fail than if you do have a decent education.
#4: You need to have good contacts to make money.
Having contacts really, really helps. Knowing the right people to get the first sales or introductions is critical.
But poor people generally only know other poor people, who are not a great market for most businesses.
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Nobody is saying that you should not start a business of your own.
However, you need to be willing to invest in your business if you want it to grow, otherwise, it will be next to impossible to take it to the next level. If you are broke, consider making money online or learning a good skill.
And never let the impulse to save a few dollars today get in the way of the long-term success of your business. Don’t be afraid to spend money to make money.
Please, I would love to hear your thoughts on this topic! Leave them below in the comments.