Raise Startup Capital With No Money or Debt

What doesn’t work

We have all been to one of those seminars that advertise that you can make large quantities of profits with no money out of your pocket. You sit through 10 minutes of the speaker pumping up the crowd by having them chant that they want to be a millionaire. And finally the punchline is that you will be using other peoples money (or your own credit) to finance whatever business idea they are trying to sell you. For most entrepreneurs this is not an option.

The second business pitch is that no money is required. You will be using the power of the internet, search engines, or social media. But once again the punchline is that these platforms are saturated with other people doing the same thing. This makes it hard to yield decent, if any, results.

The final pitch is that there may be a small fee to start your business. However, by targeting or referring friends and family you will quickly get your initial investment back. We all know how that turns out. Since we are not on the lower tiers of the MLM pyramid we have already missed the opportunity of making any real money.

What does work

Because of these type of unfruitful sales meetings and seminars, Neosynergy Consulting has developed our own tier system. Our system, however, actually delivers exactly what it offers. With our 4 tier system you can raise the appropriate capital for any project without having to use credit, other people’s money or some pyramid scheme.

When a new president of a corporation is hired the first thing they do it find ways to save money that is being wasted with the current management system. There are a lot of cuts made to the budget, payroll and expenses. Our concept is similar to what large corporations do. Before new money can be made you must first find the lost money that’s being wasted. It begins with budgeting, assigning every dollar made to a destination. Once this is done then you can begin allocating, or assigning, 20% of your current salary (the lost money that was found) toward a new destination: your new business.

Sacrifices have to be made if your dream is strong enough. So we have to find a habit or hobby that we can postpone for a few weeks until we raise the capital we need. This may be going without Starbucks (or some other indulgence) that we are used to having every day. It may be not eating fast food for a little while. Maybe we can take our lunch to work. Stop eating those costly lunches we like to take. Go over your routine and find that one thing. You are not looking to eliminate it though. You’re just going to postpone it. This allocation or postponement may take up to 3 months. This depends on your salary and the kind of business you are trying to start. The money that is raised will be used to create your new business startup. No credit or loan is needed.

The 4 Tier System

Neosynergy Consulting has 3 different articles that will help in establishing a business. We have a Business Setup Guide, a DIY Business Incorporation Guide, and we have an detailed article on how to create and implement a Strategic Business Plan. You will need to go over all three of these articles in order to create your startup business. These articles will help you throughout your setup of our 4 Tier System.

To begin, you must first pick 3 or 4 different business ideas. Arrange them in order. Start from the least complicated or easiest to fund to the most intricate and hardest to fund. Remember the 20% allocation of funds that you retained from your week salary? Well this should be used to fund the first endeavor on your list. This is your Tier 1 Business or your “T1B.” The key to successfully using our system is to make sure you do not use any of the profits from this business. There is a major misconception that since you may own the business that you also own the revenue that the company produces. This is far from the truth. If you where involved with a sole proprietorship that may be true. However, a corporation or LLC is setup completely different.

To access any of the income that a viable corporation accrues is tantamount to theft or fraud. No money should be taken from a business that is not a salary. You, however, are going to forego a salary. The company will be allowed to retain its dividends. Once the T1B is actively profitable (making more that you’re spending) then you can reclaim your 20% allocation. You can also restart that habit that you postponed if you so wish. From this point on, reorganizing time and energy is needed for the next endeavors.

Next you will be using the profits from the T1B to fund your Tier 2 Business or your T2B. Then the profits of your T1B and your T2B will be used to create a T3B. And finally a T4B can be formed from the profits of the previous three business tiers. (See the pyramid diagram above). As your time and energy becomes too strained, simple sell off, hire a manager, or dissolve one of the tiers to recoup some of these resources.

With a proper budget, a little planning, and a large portion of desire and discipline, anyone can use this system to fund a project or business. Let Neosynergy give you a few business ideas on where to allocate your startup fund. We have complete business models for any startup venture you may be interested in. Contact us for a free consultation for more details.

COPYRIGHT MATERIAL BY AARON VALLEY
ORIGINALLY POSTED ON NEOSYNERGYCONSULTING.COM

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