The basic idea is that you only spend money that the business has already earned. That way you aren’t risking any personal assets.
For example: You want to start a handyman business. You do a few of jobs for friends and neighbors in your free time. You take the money from those jobs and upgrade your tools. Do a couple more jobs and set up your LLC Do a couple more jobs and set up Bond and insurance Eventually you get enough work that you quit your day job and turn this side hustle into your full time career. Grow the business enough eventually you hire assistants, etc
But the whole time, you keep your personal money separate from your business money. They way you are never risking your personal stability. Worst case scenario, the business implodes for some reason but your personal assets are fine. You still have your house, your retirement savings, etc. And you have to go back to a 8-5 job.
Obviously this method would make growing a business slower. But it would also give you a chance to gradually learn how to run the business as it grows.
I would really like to hear anyone else thoughts and perspective on this kind of business strategy.
This can be done and has been done. It GENERALLY requires a high value and in-demand skill. A handyman business really only requires tools and a google business profile to get started. There are also services that will send you out.
Once the business DOES start making money you should probably be spending 20-30% directly back into marketing to keep growing.