The Dollar Deception

Business writers use too much ink talking about the importance of capital to business startup. In most cases an organized, thoughtfully-developed opportunity presented by a knowledgeable and prepared entrepreneur will find money. It may not be easy, but winning opportunities get money. 

Most successful businesses start with inadequate capital. Contrary to popular belief, having plenty of money often creates more problems than it solves. Having little concern about the checkbook promotes waste and sloppiness. It creates inefficiencies the organization may never get rid of. In addition, adequate funding may allow the company to get overly ambitious too fast. 

My experience shows tight initial capital serves the beginning entrepreneur well. Most organizations that become high achievers start small, keep it simple, and run a tight ship. The lessons learned early in the entrepreneurial process are not only remembered the longest but are the most valuable. Having to be cautious with a dollar is the most important lesson of all.