Managing Cashflow

[Dami-B]

"Most Businesses don't need more cash they need more brains" - Mark Cuban.

Managing cash flow is extremely f*cked up for a start up, your testing this and that, trying various alternatives, three months in and you've blown all your capital.

But does this work all the time? Is this a general rule to live by when starting a business? i.e if you can't start as small as possible and grow with as little cash, then don't start. Does this work with all business models? Is this even a rule of business? Just my thoughts, excuse me while get I back to meditating upon getting sales for my business.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[theag]

I agree with Cuban's point. Some businesses require a lot of capital to start, some require none, a lot fall in between. Start with one that requires no cash and once you made that successful you will know how to use the money you made to grow it (or start a bigger business). It will "make a real entrepreneur out of you" if you figure out how to start something from nothing and grow it into a real business.

I started my business with the last €100 I had available on my credit card and a lot of "sweat equity" (=14 hour days, everyday). Now, 9 months later, it does profitable mid 5-figures in monthly revenue, everything except customer service and media buying completely automated/outsourced. And I am just getting started with my backend, which will provide the real profits.

So its possible.

I'm pretty certain that, if I had more money available when I started, I would have probably pissed it away on useless stuff and wouldnt have learned as much as I did.

It will also be a better story to tell when, in a few years, I sit on my big yacht in the south of france, talking about how I got started .

meditating upon getting sales for my business

Sales wont magically manifest because you meditate over them.

 

[Unknown]

My revenue isn't as impressive as theag's, but I started with $2700 and $600 of that went to starting an LLC.