“I’ve got a GREAT business idea, but I just need some money. If I only had $[fill in number here], I’d be on my way”

Does that sound familiar to you? I think one of the biggest obstacles to starting a business is lack of funding. Many small business experts will tell you that one of the primary reasons that businesses fail is from a lack of cashflow. This surely can be the death of any good business idea, but having too much money is also a big problem as well.

A former employer of mine lured me into an executive position with their firm because they offered a great salary, benefits and stock options (the swan song of the 90’s). They brought in some rather impressive employees to get their startup off the ground. This cash-rich company was funded with over 100 MILLION dollars from outside investors. Because of the money they had the best of the best for us. Class A building facilities, expensive office furniture, extensive computer network. We traveled to conferences throughout the country, sponsored events and wasted money on the most ridiculous things I have ever seen. They blew through $100 Million in record time. The company was sold to another company where we were shut down uncerimoniously several months later.

Contrast this to the entrepreneur who has very little money, and yet manages to grow his or her business to amazing heights. As you yearn the need to have huge amounts of cash shoved into a business, consider these factors when you set out with your business:

1. “The Nothing to Lose Factor” - How many times have you heard the story of a single mother on welfare who started with nothing to build a multi-million dollar business? How are people like that able to succeed against all odds? In many of those cases, they are at the bottom already. They have no place to go but up. You don’t have to be in such a situation to succeed , but if you put yourself in that situation, you have nothing to lose and everything to prove, why not give it all you’ve got?

2. “The I’ll Show You Factor” - A number of successful business owners that I know were out to prove something. Maybe they were pushed around as a child, or their past employer under appreciated their talents. They felt that they were stepped on and want to prove themselves. A driving factor such as that can propel a business to succeed regardless of their financial situation.

3. “The I Have to Succeed Factor” - A former manager once told me that he liked to hire sales people that went out and purchased expensive cars and had big mortgages to pay because it motivated them to become successful or else they would lose it all. The pressure of bills can be overwhelming, likewise, if you are faced with college tuition expenses, mortgage, etc, you’re motivated because you have to.

4. “The Pride Factor” - One of the biggest motivators I’ve ever encountered is that many self-made people are extremely proud. While extreme pride might seem arrogant, the truth is that I’ve known people who’ve failed with a business and the thing that hurt the most was their pride. Likewise, if you’re convinced that your business can be successful and you put all your effort into it, you might be surprised what ingenuity can surface when the going gets tough.

Consider your situation, does it REALLY require the amount of money you think you need. Certainly if you have to buy real estate, large inventory or computer equipment there are CREATIVE things you can do to secure that, but it might require money - for those that might be able to substitute a bit of effort and time for money - that is your launching point.

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