If You Want To Make Money…..(written August, 2004)
To Make Money, You Have To Spend Money – Sounds Simple – Right?
How many great business ideas died on the vine because the person who was creative enough to think of them in the first place wasn’t daring enough to do whatever was necessary to get them off the ground? A good business concept takes more than a great idea. It’s more than hard work, too. It also takes capital! Sometimes tens of thousands and hundreds of thousands are required. But even today, successful businesses are being started for as little as a few hundred dollars! Businesses that will turn $50,000 or $60,000 or more in income year after year can be started with a very small investment. In some instances the price of a computer or a reliable vehicle or a training course would be sufficient. For many people such a business would make the difference between security and actual poverty.
That is what makes Mail Order/MLM great! You can build a full time income with part time investment of time and a small amount of money.
So why aren’t more people starting businesses? Why aren’t more of the well qualified individuals now out of work creating opportunities for themselves? In all fairness, many of them are turning their former employers into clients or are finding products they can sell to friends, relatives and former colleagues. Many others, however, are still looking for work in places where there’s no work to be found.
It’s hard to be innovative when you’re down, but sometimes necessity is what makes people come up with great ideas. Financing the ideals is the hard part. For anyone who is out of work, finding money to risk on a business venture is no easy task. And yet to pull yourself out of the cycle of unemployment and disappointment, you must find enough money to launch an independent enterprise.
How can you find money when you’re broke? Look at the stories of other successful entrepreneurs. Some borrowed from a relative or in-laws. This is a difficult thing to do in the best of circumstances. But if you have an idea you believe in, you’ll be able to do it. You’ll be forced to find several good reasons why your idea will work and this is always a smart idea when starting a business.
Other business people got their start up capital by selling possessions that were dear to them. A car, a diamond ring, an antique piece of furniture – everybody has something that can be turned into cash. Many people take advantage of credit opportunities too. It’s even possible to start a business where you pay for your supplies and materials over a period of time. Find the right idea, believe in it and in yourself. Stop thinking “I don’t have any money.” Instead start asking yourself which of the many possible money sources you prefer to use.
After you’ve started your business, you may still find you need more capital than you have on hand. This is especially true when your business is growing but still is not growing fast enough. Most businesses need some funds allocated for advertising and marketing expenses, so it’s common.
This is where most of Mail Order/MLMer’s fail. No matter what, you need to advertise. When you are starting out, 95% of your expenses need to be advertising expenses. Since advertising can make or break you, you need to stay the course. Decide how much you are going to consistently use every month for promotion and then do it religiously for 12 months! Advertising costs money! Especially when you are using the mails. Let’s face it; as of today, a first class stamp costs 37 cents. 10,000 first class stamps cost $3,700! You’ll probably gasp when you hear how much it costs. You may think of the new truck or the big-screen TV or something else you’d rather buy.
Your family may be clamoring for the money. But this advertising is no luxury. It’s as necessary to your Mail Order/MLM business as keeping the lights and heat turned on in your home. If you are not advertising right at this moment, how will anyone know what you are trying to sell? Nothing is a sure thing in advertising. Experts frequently talk about “testing.” Try several possibilities, keep track of what is working, then spend more where you get the best results.
You’ll have other areas where you have to spend money too. Business cards to hand out, catalogues, phone calls, supplies and equipment. Look at what you’ll need for the next three months, and decide what’s most important. Perhaps some expenses can be postponed. But not advertising expenses. Advertising is the blood of your business. Can you survive without blood? Spend your money in ways that will bring you more, then you’ll be able to take care of the other things.
Remember – If you want to make money, you’ll have to spend money!
The author of this article is Larry Costello, President of All-American Print & Mail, 2200 Wilson Blvd #102-57, Arlington, VA 22201.