Starting a business with No capital money?

No collateral

NO

No problem

No capital No collateral No problem
Greg Fisher www.fisherg.blogspot.com gregcfisher@gmail.com

No capital No collateral No problem

Perception vs reality
“I am going to write a business plan, send it off to the major Venture Capitalists and then take outside finding from the one that gives me the best valuation and the best terms on the deal”

No capital No collateral No problem

Perception vs reality
“I am going to write a business plan, send it off to the major Venture Capitalists and then take outside finding from the one that gives me the best valuation and the best terms on the deal”
10 months later……

“I am going to have to make the most of what I already got and start my business using alternative forms of capital”

No capital No collateral No problem

Alternative Capital
• Energy and Passion

No capital No collateral No problem

“Create a cause, not a business”
Gary Hamel Leading the Revolution

No capital No collateral No problem

Alternative Capital
• Energy and Passion • Knowledge and Skills

No capital No collateral No problem

“We control the most critical resource of our times: our own brains. Power is transferred from the capital investors to the competence investors.”
Jonas Ridderstrale & Kjell Nordstrom Funky Business

No capital No collateral No problem

What are you deeply passionate about?

What can you be world class at?

What drives your economic engine?

No capital No collateral No problem

Alternative Capital
• Energy and Passion • Knowledge and Skills • Time and Effort

No capital No collateral No problem

You need tenacity

No capital No collateral No problem

Alternative Capital
• • • • Energy and Passion Knowledge and Skills Time and Effort Resilience and Tenacity

No capital No collateral No problem

“There is a very, very, very fine line between success and failure …. it is about being constantly hammered and coming back from the hard times and low moments.”
Robbie Brozin Nandos

No capital No collateral No problem

Alternative Capital
• • • • • Energy and Passion Knowledge and Skills Time and Effort Resilience and Tenacity Networks and Connections

No capital No collateral No problem

“No person can do this alone, not Richard Branson, not Bill Gates, nobody. You need to link up with people who compliment your skills”
Robbie Brozin Nandos

No capital No collateral No problem

“Nothing the slightest bit amazing has ever been done in isolation. Individual competitiveness = what you know x who you know”
Jonas Ridderstrale & Kjell Nordstrom Funky Business

No capital • No collateral Energy No problem

• • • •

and Passion Knowledge and Skills Time and Effort Resilience and Tenacity Networks and Connections

No capital No collateral No problem

Alternative Capital
“Take away my people, but leave my factories, and soon grass will grow on the factory floors. Take away my factories, but leave my people, and soon we will have a new and better factory.”
Andrew Carnegie

No capital No collateral No problem

BOOTSTRAPPING

No capital No collateral No problem

Bootstrapping - As an allusion to lifting
oneself up by one's own bootstraps … using a special process to perform a task that one would be unable to do in general
wikipedia.org

No capital No collateral No problem

Seven strategies for bootstrapping your business

No capital No collateral No problem

1. Self

No capital No collateral No problem

Self
• Break the golden handcuffs
- Start saving - Live on less “Either you want this and you will make the sacrifices or you don’t want it and you should keep your current job”

No capital No collateral No problem

No capital No collateral No problem

Self
• Break the golden handcuffs • DIY
“You will be amazed at just how much YOU can do if you put your mind to it”

Paul Simon – Young Designers Emporium No capital No collateral No problem

Paul Simon launched his first YDE Store for less than R20000. He did all the shop fitting himself, got his mom to make sandwiches for the launch party and used a toolbox for a cash register in the first month of trading … 10 years later he sold YDE for more than R200 million.

No capital No collateral No problem

Self
• Break the golden handcuffs • DIY • Back yourself
Research shows that the things that set entrepreneurs apart from the rest of the population are self confidence and optimism

No capital No collateral No problem

2. Services

No capital No collateral No problem

Services
• Work in parallel
Sell your time while you build your product - selling times creates cash flow

No capital No collateral No problem

No capital No collateral No problem

Services
• Work in parallel • Keep the end in mind

Nkhensani – Stoned Cherrie No capital No collateral No problem

Nkhesani first did designs clothing design on an item by item basis for clients to generate cash flow … she now owns an international clothing brand and chain of retail stores. Her end was always to go global but she needed to start somewhere.

No capital No collateral No problem

3. Start

No capital No collateral No problem

Start
• Ship then test

No capital No collateral No problem

No capital No collateral No problem
If he (Microsoft) can do it then you can do it. Get your product or service out there

No capital No collateral No problem

Start
• Ship then test • Get going
You don’t need and MBA, a PhD or any other fancy letters behind your name to start a business … what you do need to do is GET STARTED

No capital No collateral No problem

4. Sell [upfront]

No capital We sold R100,000 No collateral worthproblem No of advertising

space to preferred suppliers before we even assembled our first BUSINESS-IN-A-BOX

See www.biz-box.net

No capital No collateral No problem

5. Suppliers

No capital No collateral No problem

Suppliers
• Extend credit

No capital No collateral No problem

Suppliers
• Extend credit • Partner and barter

James Hong – HOT or NOT
No capital No collateral No problem

James Hong – HOT or NOT
No capital No collateral No problem
James Hong set up the dating website www.hotornot.com with nothing. He put a couple of friends’ pictures on the web and asked others to vote whether they were “hot” or “not”. He also allowed others to load pictures of themselves to find out if they were “hot” or “not”. Next thing he knew he was getting hundreds of thousands of page views and sucking up massive amounts of bandwidth. After transitioning onto the U of Berkley server he realized he needed a better solution. He negotiated with rackspace for a free hosting solution in exchange for talking about rackspace (who were going IPO at the time) every time he was interviewed by the press. Hot or not now makes in excess of $10 million per year working no more than a few hours a week. See http://blog.guykawasaki.com/2007/06/no-planno-capi.html for the full story

No capital No collateral No problem

6. Swap and Share

No capital No collateral No problem

6. swap and share
• Barter
You have got what others want … you want what others got … so do deal where it makes sense - AOL do it, Google do it, Yahoo do it … WHY SHOULDN’T YOU DO IT?

No capital No collateral No problem

6. swap and share
• Barter • Co-buy, co-use
Do you really need your own board room, receptionist, server, call center etc???? Go through your list of required assets and identify what you could share with others

No capital No collateral No problem

7. Cash

No capital No collateral No problem

Cash
• Cash flow vs profit

“Revenue is vanity... margin is sanity... CASH IS KING”

No capital No collateral No problem

Cash
• Cash flow vs profit • Bank balance is your truth

No capital No collateral No problem

No capital No collateral No problem

Cash
• Cash flow vs profit • Bank balance is your truth • Timing

No capital No collateral No problem

Cash
• • • • Cash flow vs profit Bank balance is your truth Timing Know your numbers

No capital No collateral No problem

Seven strategies for bootstrapping your business

No capital No collateral No problem

1. Self 2. services 3. Start 4. Sell [UPFRONT] 5. Suppliers 6. Swap and share 7. Cash

Starting a business with no money? No capital No collateral No problem

No capital No collateral No problem
Greg Fisher www.fisherg.blogspot.com gregcfisher@gmail.com