Do it yourself
Those
who choose to start up a business without external funding answer to no-one and
are therefore free to manage the company as and how they see fit within legal
parameters.
Starting
a business with minimal capital, also known as bootstrapping, teaches bosses
some invaluable business skills including how to make their pound stretch
further.
After
a disappointing experience with venture capitalists in his earlier career,
Riccoboni took a different tack with his latest venture - Critical Future - by
going it alone.
'I
did learn a lot from the venture capitalists from my first venture. There were
some very strategic people on the board but that is not the only reason for the
success of the new business.
'It
helps that we are a consultancy business because we could create the company
with very little set up costs. The fact that we managed to get revenue
from clients from day one also helped.
'It
did not cost a lot to set up the website. We funded it by bootstrapping.
Entrepreneurs can build their website themselves by using templates.
'I
would encourage small start-up to get a good and workable product or service to
market and get selling. You can use the proceeds to further grow and develop
your proposition.'
It
should be noted that entrepreneurs who choose to use their own cash to get
their business up and running are taking a financial gamble - especially if the
business fails.
Also,
without a substantial capital injection, businesses risk growth at a snail's
pace and markets do not wait for anyone.
Businesses that fail to quickly build
scale are in danger of missing a window of opportunity that could propel them
to new heights.
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