Starting capital is often a setback for many entrepreneurs. Even after securing money to start the business, there are many other costs attached to running a business and getting projects off the ground. This is often the hill that most great ideas die on and where entrepreneurs give up on their dreams.
Credit expert Colin Yurcisin is dedicated to ensuring that entrepreneurs don’t give up and find ways to get money to run their businesses. According to Yurcisin, you can leverage other people’s money to invest in your business growth.
The start-small recipe works to help entrepreneurs who don’t have the funds to go all out on their business. However, as detailed by Colin Yurcisin, you can use other people’s money, also known as OPM.
The first thing you need to understand about OPM is that leveraging other people’s wealth will help increase your returns. Of all the available options for funding, including investors, loans and grants, and even self-financing, selecting the best method to go with is not an easy or quick process.
The main reason why using other people’s money is better than self-financing is that you may not have enough money or liquidity to get your brand off the ground. However, with other people’s money, you have less personal financial risk.
Another advantage of OPM is that you have access to guidance from entrepreneurs, investors, and even friends and family. Other people’s money grants you time and space to grow and push your business.
According to Colin, some of the most successful businesses today were built on other people’s money. You should look into angel investors, crowdfunding, bank loans, government grants, and any other way that you can leverage OPM to build your business.
On the flip side, the main reason people avoid other people’s money is fear of losing their business altogether. However, Yurcisin notes that this is not a concern when you do proper preparation in advance. Just like anything else in life, don’t go into using other people’s money blindly.
It is imperative to understand that in order to use other people’s money, you have to trade something in return—in most cases, a percentage of your business. As with any decision you’d make in your business, it is important to weigh the pros and cons of using other people’s money for your business.