How important is money when starting your business?
We interview and interact with quite a lot of young people through the CFE. It is always informative to get their perspective on the perceived challenges of starting a business.
One of the responses heard quite often is that you need money (capital; seed funding; equipment etc.) in order to start a business. It has been demonstrated quite often, however, that having a market with a paying customer is far more important than the challenge of having enough money to start.
Here are 5 young entrepreneurs who started their five businesses with a collective debt of $258 000. (In excess of 3 million Rand)
Shane Snow of Contently. After battling through $70 000 in student loans and another $15 000 in credit card debt, Contently is now worth an estimated $7.5 million
Rand Fiskin of Moz. Fiskin was a college dropout with a massive amount of loans, but overcame them to help take Moz to more than $30 million in yearly revenue
AJ Forsythe of ICracked After struggling with $50 000 in student loans and credit card debt, Forsythe turned his Iphone repair business into a company doing $25.2 million in revenue.
Ben Huh of Cheezburger Huh had a hard time funding meaningful work before convincing investors to buy into what would become a cultural sensation.
Matthew Paulsen of MarketBeat Paulsen’s interest in digital publishing began when finshing his masters and MarketBeat now draws more than 3 million visitors daily.
With thanks to a blog, “25 most successful bootstrapping entrepreneurs”
The lesson? These bootstrapping entrepreneurs were not fully limited in starting their business by little or no finance. In actual fact, they started owing a collective 3 million plus.
The application? If your idea is great, and you have a unique selling proposition (USP) that truly differentiates you; and you have a willing customer and finally, you yourself have perseverance, patience and an action orientation……..then you may be at the beginning of the journey in being a growth entrepreneur.
The CFE seeks to be the most innovative youth accelerator in the Western Cape; perhaps we may be of assistance with your journey in building a successful business?
If you would like to engage or enquire about our support, please contact Yondi Titi at 021-2011215
Building strong businesses led by resilient entrepreneurs