Day 9 of 31 Days to Freedom in Your Business

Today we need to talk about your startup costs and funding.  This is real talk.

Whether this is money from investors or a construction loan from a traditional lender, this can feel like monopoly money.  That’s because you haven’t earned this money, yet, with your blood, sweat, and tears.  Oh, but you will.  With interest (or dividends).  

Spend on what must be spent on to create revenue, but save on the other items.  You can always upgrade later.

Example: A new dentist is building out his first office space, all on borrowed money.  He knows what kind of chairs he likes to do his operatory work in, and what kinds he doesn’t.  This is a place to spend a little money.  What he doesn’t need are leather armchairs for the waiting room.  Later, when he is wildly successful, and has cash to buy them, he can get those leather armchairs for the waiting room if he still wants them (spoiler alert: he won’t want them when he is paying cash for them).

Bottom line is: don’t spend so much opening that you can’t expand due to the debt you are carrying or due to the amount of startup capital you had to raise to get leather armchairs for your waiting room.

Be free instead of imprisoned with bad financial choices.

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