Most entrepreneurial youths need funds to raise to finance their projects or their business ideas. They can not start a business without somebody else’s funds which is called a loan for business. Borrowing money from somebody else or from financial institutions for one’s business expandable business is the power of leverage. Robert Kiyosaki said that leverage is the key to great wealth because he also said that the leverage is the ability to do more with less.
With the leverage, you can make fast money from business because using the leverage from other people helps in increasing your business or expanding your business or starting your business as early as quick. But the truth is that borrowing the leverage (loan) from people or financial institutions to start your business idea without considering customers first is such a risk.
What if you borrow money to finance a business or to start a project and you still do not make money from customers? How do you pay off your debts when your patronage is irregular? Read this quote from Dr.C.M.Maduka: ‘A business is nothing if it has no customers’.
Therefore, that is why customers are important because they are kings and queens which can either throne or dethrone your business, depending on your products or service. So, all you need to borrow for your project is to start on the platform of creating customers first.
Most of the highly successful mega businesses some where in the world like Donald Trump, Google, Facebook, Aliko Dangote, Jim Ovie, etc don’t look for money to start their businesses. What they look for is to start on the platform of creating customers because they want to know whether their patronage is well-improved or not.
Once they are well-patronized or they find customers still demand from them, then they start to look for money to increase their businesses or expand their business or start a big business because they know they can use customers to pay off their debts immediately since they stick to their products or service regularly.
Google, Ditto for Yahoo, Facebook and other big businessmen used that strategy to become the huge business phenomenon. They don’t like to use financial leverage or borrow money to start their projects without creating customers firstly. Google, Yahoo and Facebook and other companies created enough customers before they went to the Capital Market to raise money to increase their businesses. That is so beautiful that everybody must follow their good example.
However, most entrepreneurial beginners are now debtors where they borrow money for their projects because they have poor or irregular patronage. They do not consider customers well before they raise money to finance their project. A proverb said as a warning: ‘Do not put the cart before the horse’. Don’t look for money to start a business idea before you create customers. You should start a project with your own capital or money before you borrow. You should go after customers as a test or first before you look for money. Right? Good!
Now I would like to give you the following step-by-step guides you can apply here:
STEP1: Identify what people really need or what they want or what they like to spend.
STEP2: Then create a product or service with your own money first or with little capital as a test because it is said to build big business, start small.
STEP3: Then go to customers and offer them at low price or offer them a sample freely if necessary, to know if they like your products or not.
STEP4: once they like your product or service and still demand from it, then go and look for money to increase your business or to start big business. That is so simple! Try and see it.
Once you improve your business by following these steps, then come back to share with us how it works for you. I hope you enjoy this article? If so, why not buy me a drink? If want to buy me a drink, please contact me through Jmsanya@gmail.com. Thank you for reading this. Please pass this URL to others if necessary. I will meet you again next week by God’s grace. Please stay tune with us. Thanks.
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