Well my wife (and I) were dead broke when she wanted to buy our first salon. I mean we were making ends meet, me working an 8-5 and her making some money. But that didn’t stop our dreams. Fortunately we decided to start small and fortunately the place she was working at went up for sale. She applied for a personal loan and got 10K, which was her first larger sized loan, a scary part in her life. The owner then agreed for payments for the next 10K. That was 3 years ago and we now laugh at how scared we were because now we have loans for 10 times that amount. So we started a business on a broke budget.
My point here is that it’s about how much you believe in your idea, and how hard YOU’RE willing to work for it. My wife was so determined to own a salon she never gave up and succeeded. You might get turned down 30 times but you shouldn`t give up, there`s funding out there for the project you just have to find the right bank or investor. You know SuN has a member that was homeless and started a business.
I`d also like to add that you should have some type of contingency plan. It might take a year or even more to get the funding, and you NEED to have the float time so you’re not living in a box on the streets. Heck when we bought the salon it took almost 2 months get all the paper work drawn up, have the lawyers look at it, etc. But the deal finally went through.
One thing we found was that people that lack the drive to be an entrepreneur always seem to give negative advice. Not sure why, maybe jealousy, who knows, but don’t let those people discourage you. We had family tell us we would fail, we had friends say don`t do it, so we used that as fuel just to prove them wrong. Funny now, because were succeeding and they wont talk to us anymore. Oh well.
I, too, agree with MNGrillGuy. My business required very little money to start. My suggestion regardless of what type of business you want to start: start small.
I can`t imagine that anybody would be so lucky as to not make any mistakes when starting a business. (I`ve made several myself.) And when it`s a small amount of money, and money that was actually yours, you aren`t in nearly the mess you would be in had it been a mistake made with a large amount of borrowed money.
If you are truely terrified, now may not be the time to move forward. In my experience, in order to succeed, you really need to be at peace with your decisions. I recently found that this aligns with all that "law of attraction" stuff that`s been on the web and on TV in the past year.