Forums: Discussions for entrepreneurs and small business.

I`m a 21 year old college student. I have absolutely no cash. I can probably get about $1300 for my car and use it to startup my business. I feel that I have nothing to lose. My guts telling me to go for it. What do you think?

Well, cars are usually pretty important things to have as getting around easily can be important to running your own business.  Well, unless you live in NYC.  What if you had a meeting with someone across town that could help you in your biz?

I understand you are a college student and money is hard to come by.  Rather than selling assets, are there any ways you can grow your assets (or income) to get things started?  It may take a little longer but hard work pays off, and you`ll still have wheels!

While there are some people that believe an entrepreneur should have a big stake in the company - most savvy investors don`t encourage situations where the entrepreneur`s personal finances are on thin ice. They want him/her to be able to concentrate on building the business.

For your specific situation, the primary questions I would have are:

1. Will the $1300 be enough to get your business to the point where
   1. It will support you?
   2. You will be able to attract additional capital?
   3. It will be profitable or at least self sustaining?
2. Will you be able to function (both business and personally) without a vehicle?

As an aside, before you sell the car, I`d have my business plan pretty well completed.  That should indicate the answer to question 1 above. If possible seek out the advice of a Veteran entrepreneur especially for confirmation of your assumptions.

Robert j 

-------------------------

Business Growth Masters, LLC -
Capital Catalysts for Entrepreneurs
Home of the Scalable Business Plan and QuikStart Capital Programs
http://www.bizgrowthmasters.com
info@bizgrowthmasters.com

I always tell people to make sure that they are "warm and dry" and that they don`t burn assets like home equity (and cars) that they might regret later. 

Be creative - $1300 isn`t that much.  You could start a mini start up (like mowing, painting, dog walking, etc) to make that much.  At $10 an hour, that`s only 130 hours of extra work.  I would delay your business a little longer and find another way to come up with the $$.  If you sell your car and the start up doesn`t work, then you will be looking for ways to buy a new car. 

~Kim

Yeah, you don`t really want to be in that situation.  Then again, you could always start a business to be able to pay for a new car!  ;)

You know what, I am so confident that not having my car would actually motivate me to do even better. I might sound nuts but it wouldn`t be the end of the world should the business not be a success but it WILL. I have this gut feeling like I never had before.

There`s a total difference between *survival* tools, and "investement" assets.

Sell your car and you`re screwed, unless you live in a big city with plenty of cheap public transportation. You could just as easily ask, "What if I stop my phone bill and use the money to start a business?"

Look for another way to get money.

It`s great that you are so confident in your idea!  That goes a long way to success.

But confidence doesn`t always have to do with making smart decisions.  In fact, confidence can sometimes "blind" someone to make poor choices. 

That`s why it is important to step back and look at things with an eye toward reality.  One of the greatest aspects of building a company is working with other people.  Those people help you see the realities in situations and collectively steer you toward the best decisions.  But us entrepreneurs are often alone with our dreams and confidence until we actually build the dang company.  So in the early stages, we turn to a community like this for advice.

I hope you listen to what we as your peers are saying.  We generally think there are better ways to get startup capital than selling your primary mode of transportation.

Yup, Steve`s right. There`s a big difference between confidence and boastfulness, between certainty and blind faith.

There`s an interesting question people seem to have trouble with answering: What`s the difference between an ambitious project, and a grandiose scheme?

I actually did exactly that, but my car was worth a lot more than $1300. I think it really helped me get motivated with the business. Because I don`t waste time going out.

Honestly I don`t really have that much use for the car, + when you work from home its really not a necessity. And in my situation, I can always borrow my parents` car for the day, if I need to run an errand.