The boss must not use his own money to start a business

Mondo Social Updated on 2024-02-02

A piece of advice to business owners, don't use your own money to start a business, because entrepreneurship is a high-risk thing, otherwise there is a risk of returning to poverty overnight. What can really make you successful in entrepreneurship is equity financing!

Was Jobs rich when he started his business? Does Musk have money to start a business? Was Jack Ma rich when he started his business? None of them! Do they all start their own businesses with their own money? Do you have! They know very well that they will do it when they have money, and they will not do it if they don't have money.

In order to be able to start a business, many entrepreneurs in China mortgage their houses and cars, smash pots and sell iron, and borrow money from relatives and friends everywhere. Under great pressure, the probability of drying up and scrapping in the end is very high, and the end is to return to poverty overnight.

The correct posture of the founder is that when a small project of your project has run through the MVP model, you can go public to raise money, and then come back to copy and amplify your business after raising the money. It's not that you've made money, and then you go to melt, what do you want to melt?

Why don't Lao Gan Ma and Huawei go public? Because he has already made money, he is already a leader in the industry. In this case, will you choose to go public and give the money to investors? No! Investors want to invest in you to earn 10 million this year, 50 million next year, and 100 million the year after, they earn your future growth money, and now the company loses money, they don't care!

So, you don't think that the company makes money and then goes public.

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