14) Baby steps

How to sponsor your business idea? Well, there are banks of course, and national institutions in charge of helping the small and medium enterprises. This is the first place you have to visit if you plan to open your business, whether you like it or not.

Why? Well, in theory they do help the entrepreneurs and they give some capital that is destined from the national government budget to “improve” the economy, since most of the economies all around the globe are dominated by small and medium enterprises that employ most of the population. The other two main players in each country are:

• The government: the largest “company” in all the countries.

• The local transnational or large companies: They employ a lot of people, but definitely less than the “government-company” and more than small and medium enterprises. One of their many purposes is to bring capital from other countries and inject it into the national “circular flow of income model” making the country richer since more international companies mean more money coming into the local circular flow and more money means, as well, a higher probability of a major spending in different goods. However, all markets have a lot of imported goods, so we are all the time buying, local and imported goods and services.

Are there large companies that work only in the internal market? Yes, I believe they are somewhere, but not many. One of the main advantages of large companies is to be able to compete with other large companies, in price, service, production, location, etc.

All the governments themselves have shares or ownership in some national companies, like airlines, oil, water, electricity, etc.

Another financing option is private investors: friends? business people? pensioners? your parents? Just anyone.

Be aware that private loans might mean you have to give a share of your business. They have the economical resources to help you build something, so they will definitely want something in exchange. Some investors might not be able to give you money, but perhaps they can provide you with a (essential?) part of your business, like the web page, equipment (computer, printer, fax, etc.), with extremely good luck maybe even the inventory? And so on...

I was once at the opening ceremony of an entrepreneur fair, the opening speech given by a very energetic entrepreneur, who built a successful chain of Cinemas, ended his speech in this way: “It's better to have 10 % of something than 100% of nothing”.

Time to start up and become a part of that economical flow. Ullis, a good friend, who recently came back from South Korea learned something really worth to remember from one of his professors: “making business with money is called playing, making business without money is called negotiations”.

Since I didn't receive any loan and I don't have that much money now, it's time for negotiations...

p.s. And sauna, of course at 21.00 :)