The money resource is usually required, too. You know that. If you need equipment or inventory or working capital to operate, yes, of course, you must somehow get that before you start.

I describe this topic a bit in the article, How Can I Get Money To Start My Own Business? And I go into quite a bit of specific-to-a-particular-business discussion in the Starting Business ebooks. Therefore, I won’t go into a bunch of detail here. However, I do want to point out one thing: The requirement for financing, or money, often gets tangled up with the requirement that you learn the tricks of the trade.

Specifically, people commonly use money (or someone else’s money) to compensate for not yet knowing the tricks of the trade. Sometimes this compensation is very explicit, such as when a business owner purposely buys a franchise for the franchisor’s “secret sauce” formula.

Other times, the “money” versus “tricks of the trade” trade-off appears when someone just makes dumb, expensive mistakes–and learns the tricks of the trade the hard way. In either case, however, notice that you do need more money if you don’t know the tricks of the trade. Also, you will need less money if you do know the tricks of the trade.