Don't Use Your Money To Start a New Business

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Yes, you heard right. Don't use your money to start that business you have in mind. I know you've harbored the thought in your mind for a long time, you've strategized about it, and perhaps you've done your market analysis and have seen it to be a profitable venture.

Now you've saved enough money to use and start the business finally, and here I am telling you not to use the money for the sole purpose which it was intended for. I know I might sound like a doomsday motivational speaker.

All those supposed speakers who teach people the best way to do business but whose only thriving business is painting idealistic pictures of business scenarios to unsuspecting entrepreneurs and aspiring business people, but that's not what I am.

I'm only here to tell you about the OPM business system. It's not new, neither is it a hidden concept, but it's one that's only very much utilized by the topmost half of the business system.

OPM simply means "Other People's Money". The concept advises that instead of using your money to start a new venture, you should use other people's money. And yes people won't give you their money to go start a business they aren't sure will yield profits.

So instead of going begging for money from family and friends (who might end up making fun of you and still turning you down), you can get a loan from a bank or a loaning system with low or manageable interest rates and use the loan to start the business.

Let's say for example you have saved up $1m in your account that you earmarked for a particular business. If you use it for the money and things go south, which results in you losing all the money, that means you're back at square one trying to save again for the business.

But if you have that money in your account, but you go ahead to get a loan from the bank and in the course of the business, you lose all the money. That means you owe the bank $1m plus interest. But this time around you're not back at ground zero. You still have your $1m in your account.

This means you must've learned a valuable lesson in the business about the dos and don'ts, and you still have $1m in your account to restart the business again. So you can restart the business on an experienced footing with the same amount of capital or a little less if your time frame for repaying the bank loan is due and you have started paying in bits.

This means that even with the mishap you still have a reasonable amount of capital to continue your business with minimized risk. With your $1m, you can still restart your business and still be paying off your loan in bits.

And being that you've already learned the lessons of the business, this would shorten the time you would've waited before you start earning profits if you were a novice or newbie. This means you can start paying off your debts using your profits in very little time without even touching your capital.

And in the scenario that there was no mishap at the first attempt and all your forecasts or a greater portion of it worked out perfectly, that means you can be paying off your debt and expanding the business at the same time. The $1m in your account can be used to expand the business while a part of the business profits can be used to pay off the loan.

Utilizing this concept would in the short term give you an advantage over your competitors who would be too careful with risks in order not to burn their capital and go out of business. But you on the other hand would be more flexible and ready to take higher risks which can yield even more profits.

The OPM is a trusted model that if followed strategically is a very profitable way of doing business. But this doesn't mean that it's foolproof and or is a sure way of making your business work. It still requires judicious business strategy, analysis, and personal business discipline, because a bad business will always be a bad business and a bad businessman will always be a bad businessman. In the end, always do your due diligence.

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