Think Cash Is What It Takes To Start a Business? Well, Think Again.
As an local entrepreneur, I get the chance to talk with many current and aspiring business owners. A common feeling among them is that until you have money to grow a business, you don’t really have a business – and honestly, that couldn’t be farther from the truth. Investors and others also would make you believe that without accepting investment dollars from others and giving up ownership to get it, you won’t build anything, and that too is false.
How do I know? I’m proof they’re wrong.
The key is build your business systematically and with purpose, and start with the end already in mind – not the end already in place. Here are three steps to building a business with little or no cash to start.
Create a product or service with a “minimum marketable feature”
Most business owners have the philosophy that you have to solve ALL the pains your customers have to be successful. Honestly, you just have to solve one, and if you do it well, you will be VERY successful. Start there and build on it as you can afford to.
Only focus on funding the first step
What does it take to make some cash come in the door? Focus on that. Then, look to invest in the next stage of your business as money allows.
Invest cash earned from existing clients.
Cash from clients paying you for your “minimum marketable feature” is just as green as the investors’ cash. Focus on using that to grow your business. They may also not only be key to funding your next marketable feature, but may also give you the ideas for them.
Don’t let cash stop you. Learn the steps you need to take and get going building your business.
Nick Carter is Founder and CEO of Address Two, a simple CRM for small businesses. Nick also is the author of “Unfunded: From Bootstrap to Blue Chip, Starting a Fire without the Fuel of Round-A Capital”. In the book, Nick Carter offers a simple plan to help unfunded startups maintain a manageable cash-flow, bring a product to market, grow both the customer base as well as the feature-set—all without raising funds from outside investors. It’s a difficult process, but not impossible. And, for those who endeavor and succeed, extraordinarily rewarding. To learn more or to purchase the book, visit www.gounfunded.com
Who is Nick’s Book Good For?
- The entrepreneur filled with ideas but feels limited by funding or intimidated by the process of seeking investors.