Why Borrowing Money Can Prevent Your Success
The first instinct for those trying to start a business is to borrow money from some sort of outside source. This can work for some but for the majority, it could be a very bad financial decision.
It’s common for people especially internet marketers to be impatient when it comes to building an online business. You encounter this when you come across someone who thinks that they can make money online without making any type of investment.
Or in other words, they have the get rich quick mentality. It’s possible to make money really fast if you have the right systems in place right from the beginning but this isn’t the case for most.
Internet marketing does require you to put in some hard work in the beginning of building your online business but once you set the foundation for everything it’s pretty easy to automate a large portion of the processes.
Now, if you have or are considering borrowing money then you should take a look at both the positives and negatives of that decision. If you end up borrowing money and end up spending it all without generating any revenue then you just dug yourself into a financial hole.
I always tried my best to stay away from financial decisions that involved borrowing any type of money like signing up for credit cards or taking out loans. I hold the belief that if you can’t afford to buy something with the cash you have on hand then it’s best to wait until you do.
But for an entrepreneur that has all of the correct systems in place, taking out a loan could be a smart decision if you’re laser focused on spending that money on high leverage activities like buying traffic.
Borrowing money to spend on traffic would be a logical move if you have a very strong foundation in place already for your business. If you don’t even have the business framework set up to pay back the money you borrowed, how can you expect to repay the loan with your profits?
The odds would definitely not be in your favor if you made that decision…
Like I said, I always stayed away from those types of business choices because I hate the idea of owing money to someone or a corporation. It’s like having a big weight on your shoulders holding you down.
I do know of some successful marketers that decided to take out a business loan to fund their business in the beginning but the difference with them is they had that laser focus on where to spend the money.
This isn’t the case for most people though and borrowing should only be considered if you know which high leverage activities you need to bring in profits.
Imagine taking out a loan and blowing right through it like nothing to only have your business failing in the end. That would be a tough hit even for the most persistent entrepreneur.
And since I want you to succeed, I would recommend only borrowing money if you have a solid foundation already built for your business and you spend the money on driving targeted traffic.
This is the safest way to borrow money and will give you the highest chances of succeeding in your business ventures.