It doesn’t matter if you’re just starting out or have been in the business for years. There’s one thing that can doom any business at any stage.
When I first began my journey in consulting and owning my own business, I had no idea where to start.
So I started by taking notes and asking questions.
One of the most common pieces of advice I’d receive in the beginning stage was always the same:
“You’re gonna need a small business loan.”
This didn’t make sense to me. Why did I need to take out so much money if I could just start small?
Why bite off more than I could chew?
So I went against the advice I was given and started out just $500 to my business. Within a year, that $500 turned into $1000, $10,000 and then $100,000.
In this episode, I want to talk to you about why you don’t always need that small business loan and how debt can be the anchor that drags your business down.
I also stress the importance of starting small and share with you how I approached employees and other factors I had to consider when I started my own consulting business.
In this episode, I’ll cover these topics
The Banker and the Fisherman
An American investment banker was at the pier of a small coastal Mexican village when a small boat with just one fisherman docked. Inside the small boat were several large yellowfin tuna. The American complimented the Mexican on the quality of his fish and asked how long it took to catch them.
The Mexican replied, “only a little while. The American then asked why didn’t he stay out longer and catch more fish? The Mexican said he had enough to support his family’s immediate needs. The American then asked, “but what do you do with the rest of your time?”
The Mexican fisherman said, “I sleep late, fish a little, play with my children, take siestas with my wife, Maria, stroll into the village each evening where I sip wine, and play guitar with my amigos. I have a full and busy life.”
The American scoffed, “I am a Harvard MBA and could help you. You should spend more time fishing and with the proceeds, buy a bigger boat. With the proceeds from the bigger boat, you could buy several boats, eventually you would have a fleet of fishing boats.
Instead of selling your catch to a middleman you would sell directly to the processor, eventually opening your own cannery. You would control the product, processing, and distribution.
You would need to leave this small coastal fishing village and move to Mexico City, then LA and eventually New York City, where you will run your expanding enterprise.”
The Mexican fisherman asked, “But, how long will this all take?”
To which the American replied, “15 – 20 years.”
“But what then?” Asked the Mexican.
The American laughed and said, “That’s the best part. When the time is right you would announce an IPO and sell your company stock to the public and become very rich, you would make millions!”
“Millions – then what?”
The American said, “Then you would retire. Move to a small coastal fishing village where you would sleep late, fish a little, play with your kids, take siestas with your wife, stroll to the village in the evenings where you could sip wine and play your guitar with your amigos.”
– Author Unknown
I help freelance entrepreneurs stop undercharging so they can scale a 7-figure business.
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Investing In Personal Development and why I'm attending Cliff Ravenscraft's Free the Dream Conference