BAP #4: Funding by plastic
Published June 14th, 2005 edit replace rm!
We’ve all heard the stories in colourful business magazines about people starting their multimillion dollar companies using nothing more than their credit cards as funding.
It sounds like a cool idea and all and it could probably be used as a gamble if you are betting on receiving a large amount of cashflow straight away. However the monthly burn rate you will have if you dont have oodles of cashflow straight away is one of those things to remove the focus of the business that I just can not recommend.
My mantra is as always focus on the business. Having an extra $1000 more burnrate monthly as you might get if you hit the cards, makes it so much more difficult to hit break even. This means you start worrying about money and not on building your business.
It’s a very similar anti pattern to the perpetual business plan anti pattern. It is always easier to survive or seek funding if your business is going albeit small. But it is almost impossible to do either no matter how good your business plan if you don’t focus on your business.
