It Takes Money To Make Money, True Or False Statement?

It Takes Money To Make Money, True Or False Statement?
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Is this a true statement, that it takes money to make money? It’s a kind of statement that one finds online or in business world. 

It’s a true statement from business expert, because starting your own business requires big capital. You need money for paying salaries, office space rental, telephone and merchandise goods. Indeed it takes money to make money. Even though the statement can be true, what if  you invest money and gets lesser amount then you invested?

Pumping a lot of money into business is a risky exercise, what if you don’t get return from your initial investment. Before you embark on any business project, you need a thorough business planning. Investing all your income with a hope of getting something in return is a big gamble. You must be prepared to face the following challenges. 7236da3910cb2ac700ebe03be6390f9b_1476392592_cropped

  • Your competitor
  • Your potential customers
  • Customer need analysis
  • Natural risks (fires, theft etc)
  • Equipment
  • internet access
  • Fuel
  • A demand for your product/services
  • Your current skills
  • Credit cards
  • Bank loan
  • Marketing fees
  • ETC

The statement that it takes money to make money becomes apparently correct. about 90% of offline business was started with “borrowed money”. Such capital comes with its own challenges, because the business owner must pay it back with interest. It becomes part of his/her monthly business expenditure.

Does it takes money to make money in online business?3e8cc145e593c3fd492344cf5eca0a9b_1476419850_cropped

The answer is simple no. I will tell you why, it’s not true. Look at the image on this post. You don’t need huge capital to start an online business. A little capital is adequate enough to get the ball rolling.

I know some of the internet marketing gurus may disagree. The amount shown on the image on the right is a minimum amount required to get started. Critics maintain that you don’t need any capital at all. That can’t be true. The following items are required;

  • Domain registration and hosting
  • Website security
  • Expert support
  • Keyword tool
  • Marketing fees
  • Most importantly, fees for training

You can see for yourself that the statement “it takes money to make money” is not necessarily true for this business. The essential ingredients for this business include, time, dedication, perseverance, commitment, correct mindset etc. These are natural personal attributes. In a nutshell investing huge capital in this kind of business will not generate huge profit.

Final thought

Investing huge amount of cash in offline business is essential step in building a profitable business. However, investment alone will not give rise to huge financial gains. You need to mobilize all resources in order to grow lifelong business. All business projects carry huge risks, therefore money alone will not make you achieve financial results.

As for offline business, huge capital investment is not a prerequisite. A minimum capital is required. What is essentially important here is hard working, commitment and dedication etc. It’s all about YOU to make this business a success.  You need to learn the tricks of trade, be able to come up with a winning plan. Such a winning system is hard to find. What works for me will not necessarily work for anyone, that’s a technicality of this business. Each online entrepreneur has his/her own individual winning formula.

The statement that it takes money to make money is not necessarily true for online business.

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