Can I use a personal loan to fund my business

Should you take a personal loan to fund your business?

Lesson Details:
April 27, 2020

Video Transcription: So many people want to start businesses they want to fund their businesses with alone so can you talk a little bit about like should people raise much that people get a loan to start a business and by the way I'm sure you know like Mark Cuban has a very famous quote but like only stupid people take a long to fund their business this video is brought to you by Appy Pie’s Academy is the king of bootstrapping have you read any of his stuff I read his book I'm a huge fan of his and I made that guy slept like on the floor and ate ramen noodles for years I mean the ultimate self-made bootstrap entrepreneur so yeah I I can understand that he has no tolerance for people that don't want to sleep on the floor you know he's you know he's like you share an apartment like 15 people you know that was his gig so I understand that he feels that way and to a certain extent I do too just because I know what the stuff looks like later on down the road I mean to the extent that you can bootstrap you just want to bootstrap the heck out of it you want to grow it slowly and a lot of people I call it the realtor versus lawyer syndrome so I was a lawyer for many years as a lawyer people come into your office right and they meet with you so if you if you want to project an image as a successful lawyer you need to have a nice office right but nobody sees what you drove to that office in right so you don't need a nice car however realtor's people don't really go into their offices so much but they're in their cars all the time so realtor should spend their money on cars and lawyers should spend their money on offices and nobody should have all good stuff right out of the gate because it means you're spending too much darn money before you made any.

Yes so seriously you essentially kind of advocate against you know some stuff like if you want to start a bowling alley or something like that I mean you're gonna need capital I mean is this the bottom line the bowling alley is a better business than a restaurant no I think they're both terrible that's the same situation yeah but yeah I mean sometimes you need something capital intensive but you know what you're when you're trying to start the bowling alley what's your vision what do you want to do is it you want to hold events is that your big bowling advocate is there some other way that you can build a business around this with a lot more creativity a lot less money yeah it's all about resourcefulness right yeah what do you think about these micro loan companies like you know there's Len do there's prosper I mean they're kind of people who are starting to business and taking a little button you essentially have the kid against it right you know my first and and always is that I want to remain in control you know in my business I don't want people telling me what to do I'm very American that way some people have have a less you know staunch feeling about that just know as soon as somebody writes you a check they feel that they have a interest in our business there was a very interesting identity don't even remember where I read this but it was it was a thing with a restaurant and it was a restaurant start up an Uncle Joe let's say lent 10,000 dollars to start the restaurant well Uncle Joe was like big man around town right so he shows up at their restaurant every Saturday night he sits in the corner booth he drinks for free he brings his friends you know all the sudden Uncle Joe has cost you way more than he ever gave you so when you're taking money from people you have to be really clear what the parameters are around that money.

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