Posts Tagged ‘mark’s zero capital method’

Manila Bulletin:  BIZMAKER Column – By Mark H. So – October 11, 2009

During countless business seminars that I’ve conducted since 2003, one of the most common concerns of people in starting a business is about the risks involved and the fear of failing. A very valid concern indeed, one which to the inexperienced is incredibly intimidating and very limiting to a person’s full potential.

So in this article I’m going to explain in very practical terms how entrepreneurs like me beat failure every single time. Let me take you now to one of my seminars and I want you to imagine that I’m talking directly to you with a calm, soothing, and handsome voice.

“My friend, let’s talk about why you are afraid of failing, (Tell me if you can relate)

  •       Is it because you are afraid of losing the money that you worked very hard to save up for?
  •       Are you afraid of all the horror stories that your friends tell you about business?
  •       Is it because you have tried it yourself and almost lost everything you’ve got?
  •       Is it something else?

If you answered yes to one or even all of these questions, let me tell you now that you are not alone. Millions of people all over the world feel exactly the same way. Do you know that 95% of start up businesses fail in the first 5 years, and then for those who survive, another 95% may also end up failing in the next 5 years? (This isn’t exactly encouraging I know but continue reading as I assure you it’s worth your time).

Let me tell you the number one reason why the 95% fail, it’s because they’ve never really discovered the true secret of an Entrepreneur. And that secret is not talent, it’s not  just connections or customers, and it’s definitely not about capital or the lack thereof…It’s something far more basic — It’s about knowing how to totally eliminate the  risks right from the start.

Repeat after me:You can never fail if you have nothing to lose in the first place.

Now let me explain in very practical terms what I mean by this (Please feel free to write down some notes). Okay, let’s first quantify what failure really means. 99% of failure in business is about losing the money you put in, correct? And the 1% is about losing face or a deflated ego. So let’s talk about the 99% or losing money. Many, many times people put way too much emphasis in having start up capital first (I discussed why this is wrong in my article in Manila Bulletin last Sept 23 – How to Make Money with Zero Capital). And the problem is, most of the time people put in capital that they can never really afford to lose.

So what happens, if the business closes up? They’ve lost the money and most of the time, end up devastated. Is there a better way you ask? Yes and it’s far more simple than you think.

Before you start any business, ask yourself if there is a way to start it without putting in any money first? This is called starting with Zero Capital. If your answer is “Yes” then proceed with your money making venture, and if the business closes up, did you really fail? Not at all, you might experience a deflated ego or hurt pride, but that is really nothing if you think about it. Again, you can never fail if you have nothing to lose to begin with.

Now, if the business really needs start-up capital, like a coffee shop or a grocery where you need to invest some money into it, then ask yourself 2 simple questions:

1.)    How much money am I willing to put into this business?; and

2.)    Am I willing to lose this money if ever the business does not succeed?

Now if you come up with a peso figure to the first question and say “yes” to the second question, then congratulations, right there and then you have beaten failure yet again.

Now if you answered “No” to the second question then go back to question number 1, ask yourself how much money are you willing to put into this business that you are willing to lose.  Repeat this as many times as possible until you get the answer.

So now you ask— if this is the only amount that I will put in, then I can’t start the business yet…what do I do? Should I get a loan to cover the difference? No, not even close, the first answer I’ll give you is simple and uses common sense – If you cannot afford it, then scale down the business that you want to get into. Just learn to modify your plans a little bit so that it fits your budget.

Okay, so that answer is not going to stop you right?  In your mind, you adamantly say “ I want to put up a coffee shop even if I cannot afford it”.  You are head strong and stubborn I’ll give you that, but I will also tell you that’s the spirit and here’s what you should do:

Learn how to get Capital without getting into Debt. This is called learning how to raise capital using some technical know.

Is that even possible? Of course it is. I teach this in my Capital Raising and Cash Flow Management Class where I share what I have done successfully and it’s not just something you read from a book. Life has taught me well and the lesson I am sharing with you is a jewel that I picked up a few years back.

Now I’m not yet finished with our one on one discussion. This is just the start of our journey together, what I’d like you to do now is to continue reading my future articles in Manila Bulletin every Sunday in the Classifieds section (usually C or D section). If you have missed my previous articles, you can always come back here and leave a comment. Talk soon and more success to you.

Mark So is the Chairman and CEO of Businessmaker Academy.  A sought-after Business Trainer, he has taught thousands of people practical insights and strategies to win in business.  On October 17 and 24, he is scheduled to conduct the ZERO CAPITAL BUSINESS WORKSHOP, a two-day intensive seminar with four one-on-one coaching and consultancy sessions to help you get started in business.  For more information, you may contact Tel Nos. 6874445, 6874645, 6873416 or visit www.zerocapitalclub.com.
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Money can get really tight when you are looking for a job and sometimes, even when you already have a job!  But the good news is, you can start your own business and create extra income almost immediately with ZERO CAPITAL whether you are currently employed or not.  So, are you ready to take in the secrets that I will share today?  Read closely.

You Don’t Need Money to Make Money

I was interviewed for a TV show hosted by Bishop Chito Tagle on ABC 5 and the theme of the show was “Entrepreneurship for nation building in the Philippines”. In the course of the interview, I was asked how someone can start a business when they have no money. To this I replied, “I think a lot of people have it backwards, the reason why you will go into business in the first place is because you don’t have a lot of money to begin with.”

I got a quizzical and interested look when I said this and the host asked me to elaborate further, so I replied: “In business, you do not need capital, you need customers. If you have capital but no customers, you are not in business, but if you have customers, even with no capital, then you ARE in business and you can make money”

The Zero Capital Method

Let me share with you some insights for making money without money, I call it THE ZERO CAPITAL METHOD which is really about starting your own profitable business, sideline or racket—with nothing (okay, less than a thousand pesos if you really want to be strict about it) and I don’t mean getting a loan or a hand out from your parents or relatives.

With the Zero Capital Method, you can immediately make extra money whether you are aspiring to become an entrepreneur, looking for a job or already have a job but just want extra income.  So without further ado, here are my no-nonsense learning principles and action must-do’s based on what I and my business teams do to start Zero Capital Businesses.

1. Erase from your heads that it takes money to make money – This saying is not for Entrepreneurs but for Investors. There is a big difference between the two: Entrepreneurship is about making money from nothing, Investing is about growing your money.

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2. Understand the true meaning of Capital. We loosely associate the word capital with Money. There are many other forms of capital that is not related to money but with the right plan can be made into money and a successful business. These are:

  1. Talent / Skill Capital – Do you have a marketable talent or skill in something? Write it down and make your list as long as possible
  2. Experience Capital – Do you have sought after experience in something? Think about how you can use that to start a business.
  3. Social Capital – Do you have any Influential connections in your network whom you can tap (not to give you capital) but to open doors for you?
  4. Time Capital – Do you have time? Time can be made into a business.
  5. Solution Capital – Do you have Solutions to everyday problems?
  6. Ownership Capital – Do you own everyday, useful equipment or property  that you can make money with?

3. Learn how to market and sell these forms of capital with ZERO Costs. The purest form of business is when you are able to sell. The sweetest form of selling is if you are able to do it without any upfront costs! If selling is not for you, partner with someone who does it well and work out a “Commission-Based-Zero-Cash-Out” arrangement.

4. Learn to negotiate. If you are used to bargain hunting and haggling in Divisoria, then this should be second nature for you. If you do not know how to negotiate, you must learn. – This is a non-negotiable. How? Go to divisoria with an experienced bargain hunter / negotiator, make a goal to buy something that you need at 50% of the asking price. If not successful, repeat until you are.

5. Learn to manage your money. In business, you can start with zero capital but you don’t want to end up with zero profits.  When you generate money, don’t spend it all on useless (non-profit generating) expenses.  Learn how to separate business and personal transactions using financial and tracking tools.

6. Learn from experience, or at least someone with experience to guide you and shorten the time to get to your goal. Do not get advice from people who have not done what you want to do and just tell you why it won’t work. Do not get advice from people who are not successful because you don’t want to end up like them. You want to end up like someone who has been down this road and who has succeeded.

Now, these 6 pointers are just the beginning of a very exciting road ahead. It is not for everyone.  But if you truly want to start making extra money now, there is no need to wait any further. All you need to do is ACT ON IT.

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Mark So is a fervent businessman, forex trader and educator.  He is the Chairman and CEO of Businessmaker Academy—a business, finance and corporate training center and the Chief Forex Trainer of Forex Club Manila.  A sought after speaker for business and forex, he is scheduled to conduct his signature workshop “Zero Capital Business” on October 17 and 24, 2009.  To know more about workshop, you may visit www.zerocapitalclub.com and www.businessmaker-academy.com or call (632)6874645.  You may email your comments and questions to:   markso@zerocapitalclub.com