Do you have ideas for a company you want to start but don’t have the start-up capital it takes to get your business idea off the ground? Tired of being rejected because of your credit or financial status for small business loans? There is a way you can grow enough startup capital to start your own business and even build a substantial income. If a sixteen-year-old can do it with his lawn mower in a month, then so can you!
One summer day, I watched my teenage neighbor’s son walk door to door with his lawn mower that offered to mow grass in our neighborhood. I asked him how many lawns he had cut that week, and he said four and needed two more to make $120. I admired the young man’s determination and ambition and asked him if he was saving for something in particular. He told me that he wanted to buy a car that cost $1200 and that he hoped he would have saved by the end of the summer.
My neighbor’s son didn’t realize that what he was doing was similar to the concept of compound interest. If he repeatedly mowed the neighbors’ lawns, who paid him weekly, and added another lawn a day every week, his money would grow exponentially. His $120 from the first week he mowed one lawn a day would double to $240 in the second week; By adding another to $360 a day in the third week and in the fourth week, he earned $480 for his weekly work. His income for four weeks would have amounted to 1200 dollars. If he had thought he could earn enough to buy his car by adding one lawn a day, six days a week for four weeks, I’m sure he would have done it without any problems. Otherwise, he would need over $120 a week throughout the summer to earn his $1200 to buy his car.
This is how it works to pay interest on your money. The goal is to take the initial investment and increase it by 30% or more. With this example, the first $120 never left the young man’s pocket; His investment object (which was his physical labor) increased his investment tenfold by contributing to his weekly income. He would have earned ten times his original goal of $120 a week in just four weeks, a 1,000% return!
Imagine if this were your $120 that you started with as an initial investment. The difference is that instead of doing a tedious job for your money, you used the internet to find investment properties with intrinsic value that you could buy. You would have built in enough profit margin to find buyers to buy your investment property, which would give you a return on investment (ROI) of 30% or higher. The key to this method of compound interest is to repeat this process by reinvesting your profits back into buying properties with higher market value and reselling them for a higher ROI.
The great thing about compound interest is that you can start with the amount of money you need to work with. You can start with $100 and build up enough startup capital to start two or three businesses. Use the internet to search for investment opportunities to invest in and build on. If a sixteen-year-old can do this with his lawnmower, you have a much greater advantage; You don’t need a lawn mower as a tool, you just need the knowledge and then the skill. Knowledge can be acquired, and the skill will come through experience. So collect your initial start-up capital and get started!
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Wendy is now a financial analyst and writer. Wendy has been writing about finance and personal finance since she was a sophomore in high school. She has also been writing for several online publications and published in The Huffington Post, and Forbes Woman.
Wendy is a credentialed financial analyst and has experience working with financial institutions and businesses. Wendy is also a certified financial planner. When Wendy's not writing, she enjoys tending to her many plants, watching TV, and spending time with her family.
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