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.
Time is money. So it really comes down to what is most efficient. For instance you could spend 200 hours learning to make a nice webpage. Or you can work 40 hours at a 8-5 job, pay to have the webpage created and spend 160 hours working on your product.
The flip side is treat it like gambling. Only put up what you can afford to lose. If your 8-5 income is a fixed value and you have free hours. Then spending the time to learn creating a webpage could be the most efficient way of making it to the goal.