Chapter One- Bootstrapping an idea to life
I read the Rich Dad Poor Dad series three years ago, and decided, I could do that. So I thought about businesses I could start. Being familiar with the construction industry (I was married to a painter at the time), I saw the need for good contractors to differentiate themselves from the bad.
First key: I saw a need
Then I researched my idea to see if anyone was currently meeting the need. I did my due diligence, as far I I knew what that was! Basically I searched any key words I could think of online and what it turned up! lol I would literally be reading a book on how to do something and then go do it!
Second key: Due diligence
I saw there was market for my idea, and nobody was doing it the way I thought of doing it. So, I decided to go ahead with it.
The first step I took was to set up my LLC. That was $500 out of my own pocket. If I had to do it again, I would have waited to set up my entity, because I didn't really know what would be the best fit at that time and I could have used that money for other things.
I didn't have any sort of plan, not at all! LOL In fact the whole time I had the business, I never had a plan. Not saying thats good! I just had a vision of what I wanted to accomplish, and knocked on every door I could to try to make it happen.
During this time, I was reading voraciously, and found myself trying to hire a business consultant and seek out an attorney ( I thought I needed a team). Neither worked out, thankfully.
I worked and worked on my idea from April- August. I literally created everyting from scratch. Then I brought in my spouse (at that time) as a partner in August, and we literally "burned the ships" to work on the business full time.
These are a couple of things that turned out to be horrible choices in my case. First of all, my "partner" was not completely on board and committed to the idea. Second, we had no savings to speak of and we had no cash flow for living expenses. We did have additional out going money because of the business, and any money we did make went right back into the business.
That is why it is good advice to start a business part-time. You can't do anything without cash flow.
We set a launch date for October (two months) at a local trade show, and we worked hard to have people in the database, as well to have a database itself! It was easy enough to convince someone to help us build a website (no money into it), however, selling a completely new service concept (especially without the site) was much more difficult than we had anticipated.
We also didn't have the money for the trade show booth, but I was able to convince the trade show people to give me more time. Then we partnered with one of our new clients to split the booth cost with them. We borrowed our half of the booth cost from family. We also borrowed money from family to print up brochures and business card, and I convinced the graphic designer to delay payment for his services.
Here is where the ability to sell is KEY! If I wasn't enthusiastic and confident in my idea, I never would have gotten that far! (It doesn't hurt to be good with people!)