Home – New Forums Starting your journey Who started out with nothing?

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  • #987864
    MissAP
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    Hi Everyone,

    As I am starting out, I am interested to know how much “capital” people started with?

    I don’t want to acquire finance, I want to do it from my own money, but I am not starting out with much. I have come to the realisation, that by the time I get to having stock and launch of the website and ready to sell, I will be around $50,000 poorer!
    I don’t have $50,000 upfront, but I have some money and I have a good paying job, so 6 months of development I think I will be scraping through “OK”.

    How has everyone else battled the “Money” situation, and what opportunities have you found to save money!?

    I am looking to run my business online, and hopefully then find retailers to stock my line on a “consignment” basis, until my brand and reputation stands out.

    Thanks,
    MissAP

    #1164636
    MissSassy
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    This is a how long is a piece of string question!

    Every business is going to be so different – some people like graphic designers can start with a very low amount as they don’t need stock.
    As soon as you look at a business which requires stock, the game changes substantially.

    I don’t know of any small business that got the figure correct, but you can plan!

    Create a budget for yourself and for your business – this is a starting point of realising just how much you will need. So many just create a business plan and the finances around that but you must do a personal budget too – We can’t all live for free!
    Having a personal budget will help for deciding the right time to leave your job too.

    #1164637
    Tony Manto
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    My advice is to take small steps… If you have a good paying job, then there is no real rush to start a business. Most businesses don’t make a profit for the first 3-5 years. So you need to look at the opportunity cost. If you are on $50K then you stand to loose $150k before you break even. This is not the case for all businesses but it gives you something to think about.

    Start slow. Start with a small amount of stock and build from there. Even one product at a time. You might even think about a reverse strategy where you find re-sellers first then go on line.

    Do your maths and plan for worse case scenario…

    #1164638
    jesterx
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    first of all I have met clients that have started with nothing, and turned over 6 figure a month businesses.

    Then again I have met clients who have started with daddy’s $50,000 he borrowed money and withing six months the business has failed and in bankrupcy, and a complete trainwreck story.

    So take it with a grain of salt, its always the people that have all the luck, that do not say they were lucky! That is for sure.

    Here is the saying about luck in business, or about having a profitable business….. are you ready?? ==> luck is where hard work meets opportunity

    I love this saying, but nothing can be more further than the truth.

    If you are willing to fail, and then pick yourself up and keep trying, and put in the hard work. Then you are bound to succeed. I never met a talented business owner, that has been handed everything, it takes hard work, years of work, building a list of buying customers and pressing on and on and rising up above your fears and frustrations when things do not go your way.

    We are all on this plain to learn, and to take from our experiences. businesses is just a matter of doing more of what works, and doing less of what does not work for you. Its a simple formula, however people still fail to see this, or follow along.

    Hope this helps.

    #1164639
    GlassHalfFull
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    Hello :)

    I know that others start out with a fair amount of money, but this wasn’t possible for me. I am unemployed and do not receive benefits. I’ve managed to save up a small amount of money (under $5,000) from cash that my father gives me monthly, the sale of my old car, and from selling my clothes on EBay! Additionally my accommodation is free as I still live with one parent.

    I would consider myself to be quite thrifty, I’m really on top of my money management and generally pretty resourceful. I try to take any opportunity and turn it into something that could make money, for example… I see a nice piece of vintage furniture on the side of the road out for hard rubbish… I’m liable to stop and put it in my car, selling it later for $40 is better than nothing.

    Most people would call me a pessimist actually but most of the time if I really want something I can’t accept that there isn’t a solution to a problem.

    Initially I had big dreams (and still do) but quickly realised that I’d have to start my business off much smaller than anticipated, and I’m okay with that. I think it can be dangerous to invest too much without first exercising some trial and error, and testing the waters.

    Good luck!

    #1164640
    Anonymous
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    Hi

    Good luck with your startup. I too am just starting up a bookkeeping business in Brisbane (see us at http://www.hallashconsulting.com.au) and so far I have managed to save lots of dollars by creating my own website and getting an excellent ($24 for 24 months from iPage) price for website hosting.

    I am in the process now of printing 500 leaflets for a letterbox drop :)

    If you ever need a bookkeeper keep us in mind…

    Regards
    Kerry

    #1164641
    sohoAustralia
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    Hi there –

    I started out with $1,000 and am still going strong (3 years later)

    You might call me a bootstrapper (or I prefer the lean startup model) but obviously not every business is the same.

    My business is based on virtual products and I use a lot of cloud based services to cut costs. You’re in a different boat with stock to purchase and hold.

    Have you thought of the “just in time” model? You don’t want to put all your money in stock and have nothing left over for marketing etc.,

    Good luck.

    Cheers,
    Martin

    #1164642
    LachyBanton
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    MissAP – first off: congratulations on taking the first step. I know it can be daunting.

    The man I work for, Kym Illman, started off with very little as well. He has built a fantastic company. I can’t offer you advice on how much money you need to start up, but i would suggest doing it piece by piece. Baby steps. Get your website up. Find suppliers. Maybe start selling on eBay or Etsy. Get a feel for it and the rest will follow.

    Myself and my copywriting team write a weekly blog that has heaps of marketing & social media & sales tips – particularly for small businesses. You might find something useful in there :)

    http://blog.messagesonhold.com.au/

    Hope this helps and good luck!

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