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Thursday, September 4, 2008

You need to SPEND money to MAKE money

You need to spend money to make money - There is a certain amount of risk with any venture to make money. For instance: you want to produce a Pez-Pod, you need money. You can get it from A. Your money (you have all the risk) B. Get a bank loan (you and the bank both have risks) C. You make limited partnerships (you and your partners all have risks) D. Sell stock to people (you and the stockholders have all the risk).
This risk is created by the possibility of the Pez-Pod failing to sell thus depriving you and anyone who gave you money of your investment. This works with any business. You need to have initial funds in order to do anything at all (except possibly for charity).

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