I know, I know...this is obvious, right? You'd think so. But with the amount of businesses who plummet from the eschelons of great ideas into the pit of bankruptcy it seems apparent that it isn't that simple. Far too many entrepreneurs get lost in the big idea, the big numbers, and the big dreams. They seem to forget that in the beginning (and all the way through) Cashflow is King.
Many people would think it illogical to consider starting a new business that has no overhead attached to. After all, you need a product, right? A business needs personnel, phones, computers, internet, office space, heat, etc., right? Perhaps.
The first question to ask is, "If I didn't have this [thing] would I only be inconvenienced, or would I be unable get my product to the market?" If the answer is that it would be an inconvenience then you don't need it.
"But Dave", you say, "I have to have an office. Where will I do my work and where will my employees work?"
And I reply, "How about your home? And do you need employees to start?"
"But I won't be able to concentrate at home with the kids."
"Tough nuggies. If you can't concentrate there, go to a coffee shop, or just tell the kids to play the quiet game."
"What about my clients? Where will I consult them."
"How about at their place of business."
The point is that your principle job as an entrepreneur is to avoid outgoing cashflow like the plague. If it can be done without the expense then do it. Don't listen to people who will tell you (and believe me, they will) that you have to have this item, or these materials, of that new thingamabob.
As a general governing dynamic it helps to think in these terms: If it costs you money then you haven't thought hard enough how to get it for free. Money is just one leverage you possess and the last asset you should tap into. It's not about finding a free lunch (although those are nice), it's about finding someone who has the asset of lunch and is willing to trade that for the asset of your particular product. Find someone to joint venture with. There is always, and I repeat, always someone out there who can find incentive from the leverages you possess.
