Finding financing for your enterprise or any other cause close to your heart can be daunting.
If I told you that you don't need a fortune to make a fortune, how would you feel?
Creative financing is the key to unlocking your funding your needs.
New York Times Bestselling Author of Secrets of the Millionaire Mind, T. Harv Eker, is as creative as he is exemplary in the matters of success and finances.
Not only did he go from broke to millionaire in 2 ½ years, but he has helped countless others do the same.
How did he achieve this?
He found ways to always make money available, applied creative financing and stayed flexible.
Ever heard the saying “It takes money to make money?”
Most people in the Millionaire Mind community know this to be untrue.
It nurtures confidence and reasonable security.
And it could expedite matters, but if you ask yourself if money is really required to start a business, you’ll find the answer is no.
You must however learn to be more flexible and how to make use of creative financing to your advantage.
A multitude of millionaires have lost everything, fell into massive debt, and still managed to find a way to recover.
“It takes money to make money” is a phrase people use to create the illusion of safety and security to enable their inaction.
They have no reason to leave their comfort zones then, nothing to push them to go out and get what they want.
Perhaps many people are simply unaware of other ways to finance their endeavors.
So let’s look at some of Harv’s fundamental ideas around finding capital, and believe it if you dare, that imagination is the hardest part, but creativity becomes easier once you realize and comprehend it.
The wealthiest people in the world didn’t get to where they are by doing what everybody else does. Wealthy people use creative financing.
Although time may be limited, consider these basic options before you start:
Utilize your skill-set and time productively on something that doesn’t require much money.
It should be obvious but it had to be said.
Don’t expect a home run on your first go.
Gain confidence through smaller wins, some singles, perhaps a double, do it gradually.
We’ve all got our plans, some work, others don’t.
What’s your response when the universe says, “Nope, this ain’t happening?”
Become frustrated and self-loathing?
You try another way!
Many people will wait until they believe their plan is absolutely solid and perfect before taking action.
These types of individuals are easily distracted and frazzled when their rock-solid plans start showing cracks.
You must be flexible and adapt to trying another way.
Flexibility is key.
Resources toward starting something are always required.
You don’t need a foolproof plan immediately.
Start with what you have, where you are, and with what you can.
As counter-intuitive as it may seem, one of the first rules of financing is: You don’t need the financing! Change the way you’re going about it.
The more common ways to source financing are through loans.
Such as from banks.
Finding someone who has collateral, and is willing to co-sign a loan, is another often overlooked standard method.
Just about everyone started their financial history with a co-signed loan, whether it was for schooling, their first credit card, or their first car.
Let this remind you to keep good relations with your nearest and dearest.
Private lenders are yet another option, or you could partner with somebody who has the necessary collateral.
Home equity is the easiest way to get money.
When you have available equity in property, or another asset that can be taken, getting money is generally no problem.
Now, let’s go back to business basics, and entertain buying and selling in a way that could potentially revolutionize your business conduct.
You simply reverse the order.
Pre-sell your services or products before you need to deliver or buy them.
Harv insists on doing just that, before as well as during his enterprises and he has never had cash flow problems in his life because of it.
And it’s not just for the initial financing of a business, as the rule remains ongoing.
It makes sense if you think about it… “Why should I pay for the product? If you want it, you pay for it.”
The customer is simply paying sooner for the product.
Although typically people wish to see products before buying them, few realize all they often get to see is the packaging, not the actual product…
Remember: the mind of a millionaire can’t think like everyone else.
Who’s to say monies can’t come until customers get their product?
People pre-order stuff every day.
The key here is to take advantage of or create a demand, or a ‘perceived’ demand.
This is where we draw on marketing, which, if effectively executed, can be much more affordable than actual production.
Carrying costs are also reduced by reversing the buy/sell order.
Not to mention mitigating the risk of overproduction that can’t be sold!
It makes sense to sell to a ‘high volume buyer’ from a prototype or sample instead.
Do NOT mass produce something and then try to get it sold.
That’s backward thinking and the reason many people are no longer in business!
Make that shift now!
People don’t need to see the finished product.
Some people will however insist upon it.
You too insist.
It’s entirely possible for you to jumpstart your enterprise with a little creative thinking and financing!
It doesn’t have to cost you an arm, leg, or mortgage.
Where there’s a will there’s a way.
Going from broke to millions in the bank feels darn good, and you won't know unless you do it yourself.
Don’t let what’s in your mind about what you think you know, limit the decisions you make when it comes to generating cash flow or marketing your value proposition.
Reversing a common practice could well keep you out of debt, which is where you want to be, and in business, where you’d like to stay!
Who’s to say there can be only two?
Avoiding equity and debt financing for your startup can be as simple as accepting cash up front for products and services.
Integrity is essential, so make sure you can deliver on promise if you want to stay in business.
Presales and cash on order solutions work well to finance products, without running the risk of overproduction and dead stock laying around.
Not only does it reduce cost, it also reduces the stress that comes along with not getting existing products sold.
Using prior income from sales, personal savings, funding with the help of loved ones or borrowed cash for a startup are popular ways and often preferred to taking out traditional loans, the involvement of crowdfunding or seeking investors.