BootStrapping versus Borrowing
- Parent Category: ROOT
- Category: Business
- Published: Sunday, 11 August 2019 19:03
- Written by Lawrence A Robinson
When I talk to the average Black business owner about money, they usually tell me that money is needed to grow their businesses but money is hard to find. When I ask them how much they need and what would they use the money for, that amount is about $5,000 to $10,000 and the bulk of that money will be used to get more customers in the door.
So, what Black business owners are telling me is that their most critical issue is to find more customers. An increased, steady flow of customers will solve their problem.
They want to use the increased revenue from new customers, to buy more supplies or equipment as needed.
If a mobile mechanic could add two more brake jobs, three more oil changes an a couple more tune ups a week, he could generate the $4,000 down payment needed for a bigger truck with enough battery power to run his equipment when he’s on location doing the job. The revenue generate by the new customers will take care of the truck’s monthly payments. This is better than borrowing $50,000 outright for a new truck.
If a salon owner could add 3 more weave jobs a week, she could replace all the plumbing in her shop and not go into debt for thousands of dollars to get that job done.
If a child care center could add 10 more crying babies a month, they could buy a second van to take the toddlers on more field trips with room to carry all the toys and security blankets needed.
The average business owner would rather grow their businesses and earn the revenue needed, than borrow and go into debt for the money.
If you would rather grow your business using positive cash flow rather than debt, call Urban Orlando Business. We wrote the book on BookStrapping Central Florida. Office (407)615-4066