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May
7
Keep Things Lean
Filed Under General
My business partner and I have no money available for starting a company. Yet we are going to do it anyway. When we originally sat down and worked out the numbers, we needed around $200,000 in order to start things up. This included equipment, office space, website hosting, employee salaries, etc.
A week’s worth of desperate searching for $200,000 made us re-evaluate our situation. Do we really need five employees, or could we run the company between the two of us. Is an office really necessary, or would my basement serve us just as well? Do we really need $400/month co-located web servers, or would cheapy virtual hosting suffice (Thinkstick.com is hosted for $9/month). Suddenly our dreams were within reach.
By examining the core model of our business, we realized that it wasn’t necessary to have all of the infrastructure in place right away. We decided to start small. By starting small, getting the business up and running became much less of a challenge, and also shifted our focus from finding startup capital to starting up the business.
With our new approach, only around $4,000 was needed for equipment. That is 1/50 of our original needs!
Keep things lean.
