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Published by Lily Saltore

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Published by: Lily Saltore on Dec 22, 2010
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03/20/2014

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 The Newsletter of the www.TrulyRichClub.com • DECEMBER • Volume 25, Number 1
Page 1 of 5
Q: What Can Harm Your Business?A: A Lot of Available Cash
Call me crazy.But someone who is starting his rst business shouldn’t have a lot of cash. I believe a lot of cash can harm youmore than help you.So if you’re starting your rst business now and you have very little cash—thank God!It’s one of His sweet blessings to you.Why?You’ll learn to “make do”.You’ll learn to work from home. (Don’t rent ofce space yet!)You’ll learn to use what you have. (Don’t buy new stuff yet!)Besides, it will be a fantastic story to tell 20 years from now.You’ll be able to tell your kids, “I started this giant company 20 years ago in my living room. I started withonly P15,000…”Here’s another reason why having a lot of money at the start of your rst business is bad for you…
First Businesses Usually Fail
When you start your rst business, you’ll fail.Sorry to be the one to bring the bad news.But if you really think about it, it isn’t really bad news.Because failure isn’t
God’s Rejection
. Failure is
God’s Redirection
.No, not ALL rst businesses will vanish into thin air. Some will survive. But these will be revised, rehashed,redesigned, rebuilt…
My Story of Failure
Once upon a time, I had P600,000 in savings.I was
bent 
on starting my business.Feeling condent because I had P600,000 in my hands, I looked for a business.There’s the mistake.Your money isn’t the reason why you go into business.You go into a business because you have a GIFT you want to give to the world.Not your money. It’s your gift that people need!Anyway, back to my story.Someone told me about a hotdog stand in a brand new mall. Since I had my cash, I bought the franchise forP250,000. Monthly rental was P18,000.I still had money left!What should I do with it? (You see, when you have money, your hands itch.)
 
The mall offered me another stall, right beside it. Since I had money left, I bought another franchise for anotherP250,000. This time, it was an ice cream scooping station. That required another monthly rental of P18,000.I gured: What could go wrong? It was such a simple business.But everything went wrong.Looking back, I did no research. (Crazy!)I never studied who the main shoppers were, and thus, whether they would like hotdogs or ice cream. (Theydidn’t.)I also didn’t know anything about the business.I didn’t even look for a mentor who could guide me.It was all a leap in the dark.I literally “jumped” into it blind.What happened?The moment I opened it, the business began to bleed. My monthly expenses were much more than my prots.Instead of earning, I was losing P20,000 a month!After ve months, I closed the stores.I lost P600,000 on that business.Yes, I lost everything I had.
Focus on Your Gift,Not on Your Cash
Having big cash and little business sense is a dangerous mix.Because you’ll be in a hurry to “plunk” it into your rst business, not understanding that rst businesses usuallyfail.My suggestion?If you stick to your core gift, you’ll be able to nd a business that doesn’t need much cash.My rst successful business was corporate seminars.Why? Communication is my core gift.I spoke well. I was doing it for decades. Sure, they were in religious settings—where speaking fees were tinyor non-existent.But some companies were already inviting me to speak. Could I really charge speaking fees like other corporatespeakers?I decided to try—and KABOOM—my rst successful business took off.How much capital did I need for this business?Nothing. Zero!(Note: Today, I earn enough from my other businesses, I now donate my speaking fees to my ministry.)
My Second Business Needed Only P100,000
My wife and I never sent our kids to school.Instead, we’ve been nuts enough to “homeschool” them.And we loved it.When friends learned about it, they wanted us to help them homeschool their kids too.Because it was our passion, we said yes.So I created Catholic Filipino Academy.How much capital did I need to set it up?Around P100,000.To buy one computer and one desk. (That was our entire ofce.) Plus advance payments for a bunch of writerswho made our teachers manuals.That was it.We started with 36 kids on our rst year. Around eight kids were the kids of the staff—so they were free. Wereally had only 28 paying students.
Vlum 25 Numbr 1 Dcmbr 2010 Page 2 of 5
 
Vlum 25 Numbr 1 Dcmbr 2010 Page 3 of 5
That was ve years ago.Today, we have 200 kids enrolled.We aim to keep growing every year.
My Point?Start Your Business without Much Cash
I could go on and on, telling you one story after another.I’m allergic to wannabe entrepreneurs with lots of cash.From experience, they lose it!What’s the winning combination of entrepreneurial success?
 A lot of passion and very little cash!
Why? Because “very little cash” will force you to be more creative, more imaginative, more persevering, moresacricial… Stuff necessary for a great entrepreneur.Believe me, I’ve heard of horror stories of kids of very wealthy parents who started businesses with the help of Daddy’s money and then lost millions.Because money is too easy for them.Money isn’t valued.So they’re careless with it.
When You Have Much Wisdom,That’s the Time to Get Cash
Later on, as you grow in your business skills—and you begin to taste small successes—that’s the time toborrow money to expand your business.For example: As I entered into new businesses and real estate ventures, I borrowed money. But when I did this,I already had
some
business skills under my belt.At one point, my total debt was P10M. Thankfully, all these were loans not to banks but small loans given to meby
Kamag-anak 
Incorporated: My mother, my sister, my mother-in-law, my uncle-in-law, etc. I paid them a monthlyinterest on their money—all postdated checks. These people knew I was trustworthy. (This is essential. Business isabout relationships.)
New Entrepreneur’s Workshop in January
I want to help you start your own business.I’m organizing an
 Entrepreneur’s Workshop
in January 8 and 15 here in Manila. It will be very unique (andvery effective) because participants will be bringing with them three business ideas which they can test while takingthe workshop.I can’t tell you much about it yet. But you’ll receive an email from me next Monday, describing it.But even now,
block off these dates in your calendar.
 May your dreams come true, Bo Sanchez
PS. Only 45 participants will be accepted in the workshop.
So if you really want to join it, watch for my email onMonday.

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