Bill came to me recently with this idea of “venture capital” to start his eBay business. I could not believe what I heard. First, I congratulating him on his new business plan because eBay is one place anyone can make a buck regardless of education plus business is booming on eBay.
I asked him why he did not want to start his business on a shoestring without going into debt. Honestly, if you want to become rich fast you do not start in debt but you work your way up like a smart entrepreneur.
Well, so my advice to Bill was for him to keep his current job and start an eBay business slowly. Do it on a part time basis, in the evenings and weekends. In other, words figure out eBay first through trial and error before seeking capital.
Bill is a teacher so I asked him to keep his day job and not borrow any money until he was sure of the business. I believe all business should start from the bottom up and not the other way round.
His main interest was to sell vintage clothing so I asked him to sell what was already in his possession then go to the local Goodwill and Salvation Army. Sometimes you can find vintage clothing in consignment stores at relatively low price.
Staying profitable is the key to any entrepreneurial growth and so I asked Bill to raise capital that way and finally get financing.
The problem of getting financing at the beginning of a business is if your business is not successful, you are stuck with debt for a very long time. I have seen so many people make this mistake so many times.
Starting your eBay business from a shoestring budget is better way. Why take the risk now before you test the market. So keep your job for the moment although I am sure you are tired of commuting and that mean boss.
Plan your exist strategy careful and soon you will join the ranks of eBay millionaires.
