BlodgettVentures.com

You're better off spending money on only those things you absolutely need until you have established your business as viable. Once you have done this, you can enter the arena of capital formation through equity funding. You'll have a much better story to tell your potential investors AND a much greater likelihood of getting financial backing.

I have started up over twenty-five businesses in my career, of which I was a principal. I have also assisted in the start-up of hundreds more. Here's my cardinal rule of the start up:

START SMALL!

Have you heard of the term "bootstrapping"?

It's a good time to look this up in Webster; or, go online to www.wikipedia.org and type in the word "bootstrapping." Both the dictionary and Wikipedia will define it something like this:

Dictionary: "to achieve success by one's own unaided efforts."

Wikipedia: "a self-sustaining process that proceeds without external help."

In the world of business start up, it simply means "start within your means, or self contained."

When you start up your computer, it uses the internal drive that's part of the system. Likewise, when you bootstrap your business you will start your business with the funds and resources you have at hand. You may wish to borrow a few dollars from your home line of credit or a low interest credit card. I don't recommend borrowing from a family member. You don't need a "partner" who is concerned about your every strategy and tactic right now.

You may have heard the term "garage operation." Lot's of businesses started at home, or in the garage. That's where the term came from. Virtually every good business has started there. You don't need a fancy office.

By investing in only those things you absolutely need until your business is viable, you'll later have a much better story to tell to your potential investors AND a much greater probability of getting funded.