Tips to Starting a Small Business

You are here: Home / Financing / If You Lack Sufficient Cash to Start the Business
business man laptop

By 51 Comments

business man laptop

.Lack of funds or undercapitalization is the number one reason why many small businesses fail. Many entrepreneurs fail to plan properly, expanding too soon or spending unwisely, and don’t get enough money to keep the business going for a certain period of time.




The advice of Ken Boyar in his book The Practical Dreamer: Do’s and Don’ts of Mastering a Small Business is very useful for small businesses:

I like the term “Day One Money.” It says: remember that the extra cash you set aside so you can work ON your business — not IN your business — can make the difference between staying in business and watching it slip away.

So if your great business plan is telling you that you may be undercapitalized, i.e., that you lack sufficient cash to start the business, what do you do? As I said earlier, you rework your plan, perhaps over and over again. It may mean that you need to find new sources of fumds. Either way, you’re going to do what is necessary to keep the dream alive, and to keep it alive you will carve out a practical and well-thought out plan.

Also check out the article “Why You Need a Financial Plan for Your Business” for additional tips and information.


Similar Posts:

Checklist for Starting a Business

Are you thinking of starting a business but don’t know where and how to start? Learn the step-by-step process to starting your own small or home-based business. Buy our Kindle eBook Checklist for Starting a Business at Amazon.com today.

Reader Interactions

Comments

  2. Greetings, this is a genuinely absorbing web blog and I have cherished studying many of the content and posts contained on the web site, keep up the outstanding work and desire to read a good deal more stimulating articles in the future.

    Reply

  3. Do you people have a facebook fan page? I looked for one on twitter but could not discover one, I would really like to become a fan!

    Reply

  8. I just began the beginning phase of starting my home based business but I have little money for this start up. I need some ideas of help to market the business for potential clients, I already have a FB page but maybe using it improperly. If anyone has ideas please help!!! Thanks

    Reply

  10. I think one of your advertisements caused my internet browser to resize, you might want to put that on your blacklist.

    Reply

  16. Every time I see blogs as great as this due to the fact I ought to stop bludging and begin operating on mine.Thanks

    Reply

  17. Thank you for the tips. I always thought if you don’t have capital you couldn’t start a business, but being creative enough to achieve your dream. I think it’s possible.

    Reply

  21. I’ve recently started a blog, the information you provide on this site has helped me tremendously. Thank you for all of your time & work.

    Reply

  24. This is a superb post If You Lack Sufficient Cash to Start the Business.
    Resources like the one you mentioned here will be very useful to me! I will post a link to this page on my blog. I am sure my visitors will find that very useful.

    Reply

  27. So helpful and so useful post If You Lack Sufficient Cash to Start the Business. Thanks for such informative post. Good job.

    Reply

  29. Thank you, I have recently been searching for information about this topic for ages and yours is the best I have discovered so far.

    Reply

  32. Hey there this is a fantastic post. I’m going to e-mail this to my pals. I came on this while exploring on aol I’ll be sure to come back. thanks for sharing.

    Reply

  33. There is obviously a lot to know about this. I think you made some good points in Features also.
    Keep working ,great job!

    Reply

  35. I keep listening to the news speak about getting free online grant applications so I have been
    looking around for the best site to get one.
    Thank you for your help!

    Reply

  36. it had been worth it to read to learn to read. I would like to offer your site in my site. It may? Therefore you et an account provider on Twittollower?

    Reply

  37. Hey, I tried to email you pertaining to this publish but aren?t capable to attain you. Please e-mail me when get a moment. Thanks.

    Reply

  42. This can be a topic that I have quite a strong passion about. Theres no doubt that most people today forget how important this subject is. I believe the foundation upon which a great many other things are built of course , if we do this move wrong, there are several dire consequences in the long run. Therefore, we ought to be careful and think about how precisely we want to solution this topic. I thank the writer for giving a superb first try at getting close to it.

    Reply

  43. This is a great site. It’s such a struggle to think of becoming an entrepreneur, so many things to do and so many things to think about. It is scary. Thanks for your help. I learned a lot from the site

    Reply

  44. If just the side has found here and has read the report also immediately sometimes. That’s why a thank-you and how I see, there are even other interesting contributions to disem and similar subjects. Are there You, actually, also with Facebook? If so, publishes, nevertheless, sometimes here the link to it. Thank you

    Furthermore a lot of success and sunny greetings from Majorca

    Reply

  46. I mistyped this website and luckily I found it again. presently am at my university I added this to favorites so that I can re-read it later regards

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *