Have you ever believed in something so deeply that you were willing to put everything you had into it? Have you borrowed money from a credit card, an individual, or a bank to invest in that dream?
What causes even the wealthiest of people (literally multi-millionaires and even billionaires) to put all their eggs in one basket is the feeling that they are invincible. This causes them to bypass the critical step at the beginning of any business venture, which is due diligence.
I believe in inspiration. You know, the kind that comes in a dream, or in the shower, or you are driving down the road listening to great music, and you get this “AH HA” moment. Yes!
It’s a beautiful thing. But what next?
Here's a few steps to due diligence that will keep you from putting all your eggs in one basket:
When you put all your eggs in one basket, you may not realize it, but you are subliminally stressed because you know you don’t have a back up plan.
This is why it’s so important to start with a strong and solid budget. One that makes sense and is backed up by conclusive data.
Don’t use your own money!
This causes the worst anxiety in even the wealthiest people. As you watch your savings drain, you begin to feel powerless and once you are six month into your dream and running out of money, you will not get financing from bank because you will be considered high risk.
Go to the bank and get an SBA Loan for small business, or a line or credit and use your own money as collateral.
That way you are making a reasonable monthly payment on your loan and you still have money in the bank. Emotionally, you will still feel secure.
If it is at all possible, have a good six months in the bank to cover your business and personal expenses.
This can be including your loan, and this puts the pressure off of having to make a certain dollar amount each month. It’s important to have a goal to work toward every month, but the first six months of any business idea includes all kinds of experimenting.
Remember how the saying goes, that there is no such thing as a perfect launch. You need the six month period to get into your groove.
It can be tough, but a lot of people, including myself, start new businesses while they still run the old one, or keep their W2 job.
This also takes the pressure off of needing immediate revenue. Yes, working two jobs can be tough, but I know from experience that when you are pursuing your dream, you will have relentless energy, especially if you are not worried about the bills.
Good luck and have a wonderful week!