Do you need investors to start a business?

In this article I want to address a very common question from all those entrepreneurs who already have an idea, but lack the resources to carry it out.

Or so they think.

That is why we are going to see whether or not you need an investor in your project, and if you do not, in what ways you can grow your business without an external investment.

First things first. Let's analyze the keys to determine if you really need an external investor. After that, we are going to evaluate both the pros and cons of having investors.

Successful entrepreneurs without investors

This idea has spread widely, largely due to television programs, reality shows, etc.

However, how much truth is there in that idea? Have truly successful entrepreneurs really been financed by external investment?

The answer will surprise you.

We are going to analyze 3 cases of successful entrepreneurs, and we will see if they have had external investment or rather have built their business from the ground up.

Jack Ma, founder of Alibaba

Jack Ma was born in Hangzhou, China, in 1964. He graduated from Hangzhou University with a bachelor's degree in English. After graduating, he worked as an English teacher. In 1999, he founded Alibaba, an e-commerce company.

Picture from World Economic Forum

Ma had no investors in his startup. He started Alibaba with a loan of $20,000 from his friend. The company started as an online marketplace for small Chinese businesses. Today, Alibaba is one of the most valuable companies in the world.

Ma is an example that it is possible to succeed in the business world without investors. With dedication, effort and a good idea, it is possible to create a successful company from scratch.

Aliko Dangote, founder of Dangote Group

Aliko Dangote was born in Kano, Nigeria, in 1957. He began his career as a sugar and rice trader. In 1981, she founded Dangote Group, a commodities company.

Picture from World Economic Forum

Dangote had no investors in the beginning. To start Dangote Group, he borrowed $3,000 from his uncle. The company started as a small sugar and rice trading company. Today, Dangote Group is the largest company in Nigeria and one of the most valuable companies in Africa.

Dangote is just another example that it is possible to succeed as an entrepreneur without investors. Hard work, sustained growth over time, and standing firmly were the three keys to his company's success. His example demonstrates that it is possible to create a successful company from scratch.

José Elías, owner of more than 180 companies

José Elías is a Spanish businessman born in Badalona in 1976. He is the owner of about 180 companies worldwide.

Elías suffered two bankruptcies. By 2009 he only had 3000€ in the bank account. Resources were few, but he founded an electrical company and financed it with his own savings. Eventually, he gained more customers and was able to absorb another company, Audax Renovables.

This company has a rapid growth, becoming one of the main renewable energy companies in Spain, and allowing José Elías to become millionaire.

The case of José Elías shows clearly that it is possible to be successful in the business world without investors. Elías showed that, being courageous, having a good idea and a lot of effort, it is possible to create a successful company from scratch.

Why do you think you need investors for your business?

The idea has spread that we need investors, a business angel or something similar.

If it's not with them, we're not going to get it.

If we don't have $100,000 to start, we won't make it.

Well, let me tell you that that is a complete fallacy. A lie. The greatest entrepreneurs in modern history built what they had from scratch, with a lot of effort, perseverance and trial and error. They all agree that there is a factor of luck, chance, but of course, it is not controllable.

Furthermore, when asked what they think about investing in entrepreneurship, none of them are usually very sure.

The third example, José Elías, is very clear in this regard. On his YouTube channel he has a series where he has coffee with his subscribers. These sometimes come with proposals, in which they ask this millionaire to give them €100,000, €200,000, something like if this were Shark Tank, or Lion's Den. This tycoon's response is usually this: And why do you want so much money? Can't you start at the beginning? Starting over?

So, do I need an investor to start my business?

The answer is no.

Get to work. Save. Look for partners.

But do not give your project (or shares) to an investor, when you have not yet made the most of your project.

The investment must take place on a much more advanced phase, once it has been demonstrated that the project is sustainable, not only over time but also economically.

If you want to learn more about topics like Do you need investors to start a business?, please feel free to visit Entrepreneurship.