“If we don’t understand people, we don’t understand business.” – Simon Sinek

Starting a business is hard, but one of the biggest challenges most entrepreneurs face is coming up with the capital to get started.

Traditionally, people believe they have to save every penny and self-fund their business ventures.

However, 99% of new entrepreneurs are making the mistake of waiting, while only 1% know how to leverage other people’s money—especially bank loans—to build a million-dollar brand faster.

In this blog post, we’re going to break down how successful entrepreneurs like Sam Walton, Howard Schultz, and even Elon Musk used borrowed money to start and scale their businesses to unimaginable heights.

By the end, you’ll understand how to do the same and turn your ideas into a reality without wasting years saving up capital.

The Problem with Waiting to Save Money

Most entrepreneurs think they need to save money before starting a business. And while saving money can seem like a safe and logical approach, the reality is that time is your most valuable asset.

If you’re spending years waiting to accumulate the funds, you’re also losing valuable time and opportunities that could change your life.

Example:

Imagine it takes you 5 years to save $50,000 to start your business. By the time you’ve reached your goal, someone else—using bank loans—has already launched a similar business, captured market share, and grown it into a million-dollar brand. You’ve lost 5 years while they’re already scaling.

Opportunity Cost:

Waiting to save money can lead to missed opportunities that you may never get back. Once those windows close, it’s hard to reopen them. Borrowing money, on the other hand, allows you to get in the game faster and seize opportunities while they’re still available.

How Successful Entrepreneurs Use Bank Loans

Many of the world’s top entrepreneurs built their businesses by using bank loans or other forms of borrowed money. Here are a few examples of how this strategy helped them fast-track their success:

1. Sam Walton (Founder of Walmart)

When Sam Walton lost his first business due to a lease issue, he didn’t wait years to save up the money to start again. Instead, he took out a loan from the bank to purchase his first Walmart location. That small loan was the foundation for what is now the world’s largest retailer.

Key Takeaway: Walton’s success shows that borrowing money to take advantage of opportunities—rather than waiting to save—can lead to massive growth.

2. Howard Schultz (Starbucks CEO)

Howard Schultz transformed Starbucks into the coffee empire it is today, but it all started with a loan. Schultz didn’t have the cash to buy Starbucks outright, so he took out loans and raised money from investors to execute his vision. Using other people’s money, he scaled Starbucks into a global brand.

Key Takeaway: Schultz’s story demonstrates how borrowing money can be a strategic way to acquire businesses, scale them, and dominate your market.

3. Elon Musk (Tesla & SpaceX)

Even Elon Musk, one of the wealthiest individuals on the planet, used borrowed money in the early days of Tesla and SpaceX. At one point, Musk had to take out personal loans to keep things running while pouring his own savings into his companies. Today, both Tesla and SpaceX are multi-billion-dollar companies.

Key Takeaway: Musk’s ability to manage debt and reinvest into his companies shows how borrowing money, even during tough times, can lead to extraordinary success when managed wisely.

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4. Donald Trump (Real Estate Mogul)

Donald Trump built much of his real estate empire using bank loans. He didn’t rely on personal cash but instead leveraged loans, often backed by collateral, to develop massive projects like skyscrapers and hotels. His empire grew because he understood how to use other people’s money for large-scale investments.

Key Takeaway: Borrowing with collateral and managing debt is a common strategy for scaling businesses in capital-intensive industries like real estate.

Why Borrowing Money is Less Risky Than You Think

One of the main reasons most entrepreneurs avoid borrowing money is the fear of failure and debt. They worry that if their business doesn’t succeed, they’ll owe the bank money and hurt their credit score. But here’s the truth: the real risk isn’t borrowing—it’s missing out on opportunities.

Missed Opportunities: Every time you wait to save money, you’re potentially passing up on once-in-a-lifetime opportunities to build something great. Credit scores can be rebuilt, and debts can be repaid. But the chance to build a brand that could change your life? That might never come again.

Risk Management Strategies Used by the Wealthy

Wealthy entrepreneurs don’t take reckless risks. They manage risk in ways that minimize potential losses while maximizing potential gains. Here are some of the strategies they use:

• Collateral and Asset-Backed Loans: Wealthy business owners often secure their loans with assets like real estate. This reduces the risk for both the lender and the borrower.

• LLCs for Protection: Setting up an LLC separates personal and business assets. If the business fails, your personal finances stay protected.

• Chapter 11 Bankruptcy: Even if things go wrong, many successful entrepreneurs use legal tools like Chapter 11 bankruptcy to restructure their debt and come back stronger. Companies like General Motors and Hertz have used this method to reorganize and bounce back after tough times.

How You Can Use Bank Loans to Build Your Brand

So how can you start using bank loans to fund and grow your business? Here’s a step-by-step approach:

1. Start Small: Open a business account and begin building a relationship with your bank. Start with small loans or lines of credit, and manage them responsibly.

2. Calculate ROI: Before taking out any loan, calculate the return on investment (ROI). Ensure that every dollar borrowed will generate more revenue for your business.

3. Build Trust: Consistently show your bank that you’re a low-risk borrower by maintaining steady deposits, keeping your business organized, and managing any debt responsibly.

4. Leverage Collateral: If possible, use collateral or asset-backed loans to secure better terms and minimize personal risk.

The idea that you need to save money to start a business is outdated. Some of the world’s most successful entrepreneurs used borrowed money—whether from banks or investors—to get ahead and build massive brands.

By leveraging other people’s money, you can fast-track your success, seize opportunities, and turn your business dreams into reality.

At AMZ Shifu, we’re here to guide you in navigating these critical decisions, from crafting a solid business plan to executing growth strategies that drive results.

Book a Call with us today!

Remember, the biggest risk isn’t borrowing—it’s waiting too long and missing your chance. If you’re ready to take the next step, start building relationships with your bank, create a solid business plan, and take calculated risks that will help you grow your brand faster.

Here's a video I showed how I started my million dollar amazon brand with $0: Click here