8/11/2021 Tip: Bootstrap Funding | Growthink

8/11/2021 Tip: Bootstrap Funding

Today’s Quote

“Focus on your potential instead of your limitations.”
~ Alan Loy McGinnis

 

Today’s Tip

Many of my newsletters and blog posts are on the topic of raising capital. I talk about how to raise angel funding. And venture capital, etc.

And don’t get me wrong, I think, actually I know, that raising funding is critical. Because the #1 reason (by far) why entrepreneurs fail, is that they don’t have or run out of cash.

But one thing I’d like to clarify is that you CAN start and grow a business without funding. Or with little funding.

In fact, many great businesses have been started this way. A survey of Inc 500 companies found that 48% started with $20K in financing or less, and 73% started with less than $100K in financing.

And, if you are looking for BIG funding sources, like venture capital, they will often want to see that you have bootstrapped or already raised other, smaller funding sources before they fund you.

So, if I misspoke or implied that you absolutely must raise lots of funding from the get-go forgive me. Rather, you must start by bootstrapping or raising enough funding to get you going, and then later on, many more funding sources will become available to you to help you grow your company.

Let me give you some examples of entrepreneurs who have done this. In fact, most of these entrepreneurs have started with these small amounts and then raised huge amounts of funding when they were ready for rapid growth:

  • Under Armour’s Kevin Plank funded his company’s launch with credit cards.
  • Brian Scudamore founded 1-800-GOT-JUNK, which now has over 200 franchised locations in the US alone, with just $700 of funding.
  • Michael Dell launched Dell Computers with only $1,000.
  • Jill Blashack Strahan launched Tastefully Simple, which offers easy-to-prepare foods and gifts with just $6,000 in savings. Her company now generates over $115 Million in annual revenues.
  • Ben & Jerry launched with $8,000 in savings and a $4,000 loan.
  • Pamela Skaist-Levy and Gela Nash-Taylor launched Juicy Couture Clothing with just $200 and a revolving line of credit. Juicy Couture was later sold for $53 million to Liz Claiborne.
  • Google’s Sergey Brin and Larry Page launched the company with credit cards (and later raised angel then VC funding among others).

And, in addition to these and other entrepreneurs who launched their companies with little funding, there are tons of entrepreneurs who have launched their companies with non-traditional sources of funding.

Such as Kenneth Cole, who raised hundreds of thousands of dollars in funding from a shoe manufacturer (vendor funding). Or Blowfly Beer, who raised tens of thousands of dollars in funding from customers (customer financing).

The key point I want to stress here is that the vast majority of entrepreneurs have the mindset that if they can’t raise money from banks, angels or VCs, that they can’t launch or grow their companies. This is simply NOT true. So don’t fall into this thinking.

 

Today’s Resource

Why Haven’t You Gotten Funded Yet?

Today, I want to share with you the key reasons why you don’t have the funding you need:

Get all the details here <— Click here 

In a nutshell, if you’re like most entrepreneurs, then you’re probably in one of two positions…

1) You know you need funding, but you don’t know where to start

Don’t let your lack of experience stop you from achieving your goals!

Even if you’re just starting out, I’ll show you how to get the money you need. (It’s easier than you think)

Click here to learn more and get started 

2) You’re trying to raise capital, but you’re just not getting any results

Most likely you’re taking the wrong approach! I’m going to show you a very simple but very effective step-by-step strategy for getting the funding you deserve.

Why haven’t YOU gotten funded yet? <— Click here to find out

 

Trivia

Today’s Question: The name of which company is supposedly derived from the transcendental god of Zoroastrianism?

Previous Question: In the list of the largest exporters by value in the US, which company “takes-off” to the top position?

Previous Answer: Boeing.

In 2006 it took 55% of global commercial aircraft orders for the first time since 2000. Boeing also continues to serve as the prime contractor on the International Space Station and has built several of the major components.

 

Join our Tip of the Day

To get Growthink’s Tip of the Day delivered to your email inbox, enter your information below:

[for="inf_misc_Pleasegiveusabriefoverviewofyourbusinessandorcurrentchallenges"]
[for="inf_misc_Pleasegiveusabriefoverviewofyourbusinessandorcurrentchallenges"]
[for="inf_misc_Pleasegiveusabriefoverviewofyourbusinessandorcurrentchallenges"]
[for="inf_misc_Pleasegiveusabriefoverviewofyourbusinessandorcurrentchallenges"]
[for="inf_misc_Pleasegiveusabriefoverviewofyourbusinessandorcurrentchallenges"]
[for="inf_misc_Pleasegiveusabriefoverviewofyourbusinessandorcurrentchallenges"]
[for="inf_misc_Pleasegiveusabriefoverviewofyourbusinessandorcurrentchallenges"]
[for="inf_misc_Pleasegiveusabriefoverviewofyourbusinessandorcurrentchallenges"]