The other day after a buddies birthday festivities, a few of us went to grab some late night food. We started talking about all sorts of topics, and then one dude mentioned that he was exhausted from the work week. Then he started to complain about his job and how it drains him to the point that he doesn’t even feel like working out after a day of work.
“Why don’t you quit your job or try doing your own thing? You live with your parents and you pay literally next to nothing in expenses.”
That’s how I responded. I don’t believe in pity parties and I don’t feel sorry for anyone in perfect health with the ability to do anything that they want to. If you’re in your 20s, you can do anything that you want.
He responded by complaining some more. He said that he was waiting to start his own business. He felt that he would be set once he finally started his own business.
“You’ve been talking about starting your own business for two years now. What’s the hold up?”
This is where I became infuriated. He said that he wasn’t going to start a business until he had enough money saved up. I found this to be a ridiculous statement on many levels. For one, you can never save enough money to go all out and start a business that involves buying a franchise (like Subway or something). And also, you don’t need to save a fortune to start a business these days!
The reason that you shouldn’t invest a dollar into your business is because you don’t have to.
The beauty of this era is that anyone can start an online business or any business for less than $1,000 or a $100.
When I took my first course on entrepreneurship in college, I learned about a thing called sweat equity and how it could potentially be more beneficial than venture capital or any other form of funding. I haven’t thought much about this idea in the last little, but I still wanted to write about it. Much like when I researched how the stock market works, I took the time to learn more about sweat equity.
I decided to check out Entrepreneur.com to see what they had to say about sweat equity.
What’s sweat equity all about?
According to the Entrepreneur website, the definition of sweat equity is:
“The term usually given to the time and effort a cash-strapped entrepreneur puts into a business in order to earn his/her ownership share — as opposed to contributing money for it. Employees are paid a salary for the work they put in.”
It’s the work that you put into the company essentially.
What’s sweat equity worth?
If sweat equity is so important, what’s it made up of? What’s sweat equity worth? According to another article on the site, I found that sweat equity boils down to:
- Your commitment. This is how consistent and how dedicated you are to the business. Is it something you do for fun? Is it your life?
- Unique contribution. We all like to think that we’re special. What do you bring to the table that nobody else can?
- Hopes and dreams. Everyone wants to create the next Facebook. Sweat equity will always be directly tied into your dreams with the business and how hard you’re willing to work for them.
You don’t need thousands of dollars in equity. All you need is sweat equity to get the ball rolling. You don’t have to stress about investing your money.
Let’s put this all together now…
You can easily start freelancing, open up an online business, or take any action right now.
I realize that I said you didn’t have to invest a dollar into your business. However, if you have an extra $6.95 you can sign up with Bluehost to launch your own blog to offer your own unique services right now or just to see if there’s an audience for what you’re trying to offer. You can also host an unlimited amount of domains under each account. This way you can test out all of your business ideas.
That’s why I feel you shouldn’t worry about investing a dollar into your business. Initially your effort, ambition, and actions will be much more important in starting that business. Once you gain some momentum or get completely lost you can start to think about investing money into your business.
I don’t want you guys to hold back from doing something cool just because you don’t feel like you have enough money saved up. Do it now and worry about the money later.