Do you have ideas for a business you want to start but don’t have the start-up capital needed to get your business idea off the ground? Tired of being turned down for small business loans because of your credit or financial status? There is a way to generate enough startup capital to start your own business and even generate substantial income. If a sixteen year old can do it with his lawn mower in a month, so can you!

One summer day I watched my neighbor’s teenage son go door-to-door with his lawn mower offering to mow our neighborhood grass. I asked him how many lawns he had mowed that week and he said four and he needed two more to make $120. I admired the young man’s determination and ambition and asked if he was saving for anything in particular. He told me that he wanted to buy a car that cost $1200 which he hoped to have saved up by the end of the summer.

My neighbor’s son didn’t realize that what he was doing was similar to the concept of compounding money. If he repeated mowing the neighbors’ lawn that he was paid weekly and added one more lawn per day each week, his money would grow exponentially. Your $120 the first week of mowing a lawn a day would double the second week to $240; adding one more per day the third week at $360 and by the fourth week he would earn $480 for his week’s work. His earnings for four weeks would have totaled $1,200. If I thought he could earn enough to buy his car by adding a lawn a day, six days a week, for four weeks, I’m sure he would have done it no problem. Otherwise, she would take him all summer at $120 a week to make her $1200 to buy his car.

This is how compounding your money works. The goal is to take the initial investment and increase it by 30% or more. Using this example, the first $120 never came out of the young man’s pocket; His investment object (which was his physical labor) increased his investment tenfold by increasing his weekly earnings. He would have earned ten times his initial goal of $120 a week in just four weeks, a 1,000% return!

Imagine if this was your $120 that you started with as your initial investment. The difference is that instead of doing the laborious type of work to grow his money, he used the Internet to find investment items of intrinsic value that he could buy. You would have enough built-in profit margin to locate buyers to buy your investment object that would give you a return on investment (ROI) of 30% or more. The key to this method of compounding money is to repeat this process by reinvesting your profits in buying higher market value items and reselling them for a higher ROI.

The best thing about compounding is that you can start with any amount of money you have to work with. You can start with $100 dollars and generate enough startup capital to start two or three businesses. Use the Internet to search for investment opportunities that you can invest in and take advantage of. If a sixteen year old can do it with his lawn mower, you have a much bigger advantage; he doesn’t need a lawnmower as a tool, he just needs the knowledge and then the skill. Knowledge can be acquired, and skill will come through experience. So gather your seed capital and get started!