In ”EP 11: You Must Spend Money to Make Money” of the “One Eye Deer” Podcast, we discover if you must spend first to generate more money for your business. According to a postmortem analysis of 101 startups by CB Insights, 29% of small businesses fail due to a lack of capital. In an article in Entrepreneur.com entitled ”It Always Takes More Time and Money Than You Think to Start a Business”, Whitestone Partners, a US-based business consultancy firm, shared how they started in a room over our garage. They kept their costs to a minimum and believed that they would be able to sell their consulting services reasonably quickly.  While they didn’t anticipate being able to replace their former salaries immediately, they thought that within three to six months, they would be able to pay their bills from the business and within a year they should be paying themselves.  They were wrong.  It took them exactly 12 months to start generating revenue. Similarly, an acquaintance in Malaysia recently contacted our KL office with the desire to start a business in KL or Selangor. It is a B2C (business to consumer) to sell services directly to end clients. The nature of the business requires a physical location that caters to customers. The acquaintance had done her own projections and calculated her initial capital outlay and monthly expenses needed to operate her business. When we heard these figures, we immediately felt it was tremendously undervalued. We did our own rough projections based on our experience and took the following costs in mind. Our projections for capital needed was more than twice projected and monthly expenses were almost 3 times as much. Unfortunately, the acquaintance felt our projections were too high and not realistic. And that her figures were viable. So is it really necessary to spend first in order to generate more revenue for your business? Join certified marketing management consultant, J C Sum, as he talks further on whether you must spend money to make more money.