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Those of You Who Own Businesses, How Did You Save Up to Start It?


WheelsRCool
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So this isn't about what businesses do people own or anything, I am just curious about what things people did to save the money to start their business and how long it took?

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I'm definitely not like the majority of people here, at least not yet, but I own my own businesses. I hate the notion that you have to save a lot of money or need a lot of money to start a business. I also have my hands in a lot of things which I'm sure is frowned upon by some.

 

I'm only 27 right now and started my own business when I was 21. That particular one I raised capital through crowdfunding and a small loan which was paid off. The company (sports nutrition) ended up failing but I learned a ton.

 

I then started another company based off a product I created with about $500 for a website and enough supplies to make enough to start selling. I have yet to profit from that company but I have been growing it steadily on the side from its own profits and we're about to be pushed into petco which will be huge without spending more than $500 of my own money. My profit margins are about 350% with little to no operating expenses so I'm hoping it will really pay off.

 

I also own and live off of another business of mine. I've only put about $5k into it but a ton of sweat equity and a good credit line which is paid off weekely more or less. This company currently brings in roughly $20k a month in pure profit but has only been in operation for about 8 months, growing month over month.

 

Oh and I also flip homes on the side with little to nothing down.

 

It's all about getting creative to raise the capital. There's always a way to start whatever you want but you have to think outside of the box if you're like me and dont have a lot of mone. I'm FAR from living comfortably, especially now that I'm buying my own house instead of renting. I live within my means and work smart. I do work hard but I will never let work overrun my life or sacrifice my family and free time. Time will tell if it all works out!

 

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At 24 I decided a Law Firm was a real great future for me. Started with NO money in bank and credit card cash advances

 

Started in my kitchen with a secy I met at the beach ... on my birthday (quit my job that day)

- bought a computer before windows was popular

bought a fax

advertised in Yellow Pages ... the book

handed out business cards

ran up credit cards... invested 40k in credit card cash advances...in my business and never looked back and paid it off in 2 years... lived in one room and the other two rooms in the tiny house were for the "law firm" and my wife spoke no English and worked in a supermarket

handled 135 cases first year

185 second year...

 

was in newspapers and clearly the best at what I did (or the hungriest in the field) by third year

 

had 5 layers in that house... sold to buy another house ... lived with no savings and worked from my home till 37 years of age (worked 6 a.m. to 2 a.m. 7 days ...) had 12 lawyers and 8 support staff "IN MY HOUSE... daily and I lived in one room... divorced my "me no speek-a da English" wife .. worked harder. dated insane chicks and went to the most insane sexy places in the world.. brazil; Thailand; etc and private islands and yaghts..

 

town threw me out of my own house (20 people in a house working 1000 cases a rear in a residential area.... and I went to a post office that became vacant... bought it cash ...nice federal building.

 

at 42 I had tens of "fcuk you millions" and I met big tittie blondie... bought a lambo ... went across countries in rallies .. was on mtv and tv for Balling... met dali Lama... and climbed mount Kilimanjaro... photographed wild lions ... swam with great white sharks ... jumped out of planes and flew fighter jets... stayed a few weeks at the burj al arab ... went on insane expeditions in india Africa and south America... found myself and liked what I found.

 

went back to work harder than ever... scaled back to mon-thurs 7am -8 p.m. with Friday -sun off for lambo driving... 3 weeks of vacation a year all revolving Gumball goldrush or my own cross country lambo stuff.

 

I had not one cent in my early thirties... all debt. The most I ever borrowed from dad was 5k once... and I paid it off. I support both my parents 100% ,and I became a "fake: father to a beautiful fat little boy "the Bean: 8 years ago. he balls so very hard at 8 years old.

 

There was no "time off from 24-37 tears old

there was no "family life

there was NO extravagance

there was only saving and cheap suits and no sleep

there was credit card cash advances and working from home

there was NO vacations.. no weekends.. no fun just work.

never night clubs or dining out.. never. there was no time for anything but work

 

now there is Supercar lifestyle and I think it was all worth it.

 

there is no drinking as I remain "on the clock" 24-7 for high end and low end divorce clients ..and there is still really no family life... that just gets in the way of my profession and balling.

 

I have little attachment to anything and everything and everyone is replaceable... think about. #tru

 

 

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We had investments/assets but I didn't want to liquidate them for various reasons.

 

So I took a HELOC on my house as the rates were low at the time and as I had a lot of equity in the house, it was a small risk. We started in our garage and worked out of the house for the first year.

 

My only regret was not doing it sooner.

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Entire post

 

Thanks for the information, but did you really only sleep four hours a night all that time?

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We had investments/assets but I didn't want to liquidate them for various reasons.

 

So I took a HELOC on my house as the rates were low at the time and as I had a lot of equity in the house, it was a small risk. We started in our garage and worked out of the house for the first year.

 

My only regret was not doing it sooner.

 

That is one idea I have had, acquire a house then use it as a way to finance the business.

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Stopped clubbing and partying, never eat out, rarely go out shopping for new clothes, don't have tv at home

 

I currently do 70h weeks during winter, 90+ during summer

 

basically have no life.

 

I want to finish paying off my first business which is a bit different from you, but still the same principle. Sacrificing all the small things add up quickly.

 

4yrs in, business is payed off this year with a new business opening up. During those years I bought a viper,h1,gallardo,v12 vantage,raptor and scud

 

 

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That is one idea I have had, acquire a house then use it as a way to finance the business.

 

That's about as simple as proclaiming you will win the lottery to finance your business. Generally (especially your first go-around) a house you acquire will end up with your debt plus closing costs and down payment will exceed the value of the home. Depending on the market conditions it could be years before you have enough equity to make this idea at all feasible. And you're going to have to be playing in a home value range sees significant $$$ changes.

 

I'm betting Kinsella probably had a good income and a pretty nice place with some healthy equity for this to be a reasonable path.

 

I guess what i'm saying is, as a general rule of thumb and especially for the inexperienced, this is a horrible game plan.

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I'm betting Kinsella probably had a good income and a pretty nice place with some healthy equity for this to be a reasonable path.

 

I guess what i'm saying is, as a general rule of thumb and especially for the inexperienced, this is a horrible game plan.

 

Dead on, I was leaving a lucrative career running businesses and the home I owned at the time had doubled in value in the preceding 6 years I owned it. So even with the HELOC I still only owed a little over half what is was worth at the time and it continued to appreciate significantly for the additional 3 years I owned it.

 

In this RE market I doubt it is a feasible option, plus all RE estate loans are much harder to get than before the market crash.

 

Many people went under using this exact method, pulled out too much money to buy jet skis and monster trucks and then their houses dropped in value and they were fucked.

 

It made sense for us as it was the cheapest way to the raise money, liquidating assets and investments would have lead to significant capital gains issues etc. Plus you lost the compounding annuity associated with those investments.

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That's about as simple as proclaiming you will win the lottery to finance your business. Generally (especially your first go-around) a house you acquire will end up with your debt plus closing costs and down payment will exceed the value of the home. Depending on the market conditions it could be years before you have enough equity to make this idea at all feasible. And you're going to have to be playing in a home value range sees significant $$$ changes.

 

I'm betting Kinsella probably had a good income and a pretty nice place with some healthy equity for this to be a reasonable path.

 

I guess what i'm saying is, as a general rule of thumb and especially for the inexperienced, this is a horrible game plan.

 

Yeah, I was thinking of that as a longer-term plan, like buy the home, and also begin saving money, then some years down the line, use it for that. For shorter-term though, I would need a different approach.

 

What does this quote mean?

 

And you're going to have to be playing in a home value range sees significant $$$ changes.

 

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What does this quote mean?

 

If you buy a place for $250k it will take you many years to build any significant equity in real $$$. A small % shift on a $1m home goes considerably further. Especially when the financing costs are factored into the total sum.

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Yeah, I was thinking of that as a longer-term plan, like buy the home, and also begin saving money, then some years down the line, use it for that. For shorter-term though, I would need a different approach.

 

What does this quote mean?

 

So before you even get to the money raising. A far more important question is - do you have the skill set, the personality, the self discipline and motivation to run a successful business? It is definitely not for everybody and one of the main reasons why most new businesses run by people with no experience fail in the first year. If it's a restaurant - odds of success drop even further.

 

 

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Thanks for the information, but did you really only sleep four hours a night all that time?

 

yep. in law school I learned to work so long and hard at Legal Stuff ... while also being a waiter without sleep ... school 8am-4pm waiter job 4-11pm study 12-3am

also threw pizza in the air on weekends and was an IHOP short order cook

 

62 OE and wrecked means .... 6 eggs in 2 separate plates (3 eggs per plate) OE was Over Easy and Wrecked was scrambled...

I will never forget the ordering system in IHOP before computers

 

Nothing was ever (EVER) HANDED TO ME :) I would have liked it better if it was (lol) but it wasn't. My dad would pick me up from the Italian restaurants where I washed dishes at 12 years old and I would steal clams in marinara sauce for him.. I made $2.05 and hour and after 2 years I got a raise to $2.15 and hour. It hurt. I wanted $2.25

 

I saved that money and delivered papers too. I bought a Gary Klein Bicycle at 15 ... (over $1700) and went from Italy ... into Switzerland and also Yugaslavia .. on that bike when I was 17 for $50 a day and also across the USA ...

 

I recreated the Italy to Switzerland route when I was 47 after the Grande Giro on a red roadster... I climbed this hill at 17 and at 47 (30 years man) this was a very emotional moment for me

post-93516-1428542815_thumb.jpg

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I am in the process of launching my first start up. We raised a little over $2M in equity from angel investors and a publicly traded company.

 

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I took my 2 pet chameleons and bred them to make eggs. Hatched the eggs and sold all the males for $400 each. Kept the females and bought another male. Then bred that male to all the other female chameleons. Rinse washed and repeated. Made a website screameleons.com to sell the chameleons.

 

That made enough cash so I could start mhelpdesk.com.

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Graduated with a bachelor's, master's, and law degree (needed the latter to pay for the former). Worked my ass off 6 days week from age 24-35.

 

At 35 I opened my own firm, kinda like TeamSalamone, we worked around kitchen tables for a few months before making out credit cards and getting some office space and furniture. I went big early, 5 attorneys in first month with idea that if I could hire them midmonth and send an invoice on the 1st then I could get paid net 30 days and only have to float 60-90 days worth of payroll and costs before the business became self-sustaining.

 

Back to your question: I went into it with $150k cash and credit. But it was all on the line, married. With a baby on the way.

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I got an SBA loan and put my first home up as collateral. That was 13 years and 3 houses ago.

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At 21 I found myself in a new country, couldn't speak a word of English with $300 in my pocket, after few unsuccessful credit card applications I was finally given one with a $9k limit, the rest is history, long history :icon_mrgreen:, in short I would have zero issues selling ice to Eskimos, not only that, I bet I could make them line up for it :icon_mrgreen:

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yep. in law school I learned to work so long and hard at Legal Stuff ... while also being a waiter without sleep ... school 8am-4pm waiter job 4-11pm study 12-3am

also threw pizza in the air on weekends and was an IHOP short order cook

 

62 OE and wrecked means .... 6 eggs in 2 separate plates (3 eggs per plate) OE was Over Easy and Wrecked was scrambled...

I will never forget the ordering system in IHOP before computers

 

Nothing was ever (EVER) HANDED TO ME :) I would have liked it better if it was (lol) but it wasn't. My dad would pick me up from the Italian restaurants where I washed dishes at 12 years old and I would steal clams in marinara sauce for him.. I made $2.05 and hour and after 2 years I got a raise to $2.15 and hour. It hurt. I wanted $2.25

 

I saved that money and delivered papers too. I bought a Gary Klein Bicycle at 15 ... (over $1700) and went from Italy ... into Switzerland and also Yugaslavia .. on that bike when I was 17 for $50 a day and also across the USA ...

 

I recreated the Italy to Switzerland route when I was 47 after the Grande Giro on a red roadster... I climbed this hill at 17 and at 47 (30 years man) this was a very emotional moment for me

This Dude got all my respect. My opinion of-course NOT matter, just want to express admiration :icon_thumleft:

 

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This Dude got all my respect. My opinion of-course NOT matter, just want to express admiration :icon_thumleft:

 

Very impressive mindset indeed, way to go Salamone! :icon_thumleft:

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Short story. Left a steady well paying job in 2000 to start my own company. Worked around the clock out of my apartment next to the world trade center. Had enough money for 2 sandwiches from the deli when it closed (they sold the old sandwiches for $1 after 4pm - had to wait until then for lunch and dinner). Lived like a pauper until we opened the premises which we had borrowed $600k for ON sept 11th 2001. This day was our grand opening, staff hired, offices done....home totalled, business evaporated (every stopped spending in my proffesion), spent the next 18 months trying to put everything back together. Slowly got out of the hole and built the company back up. I still work my ass off like there is no tomorrow.

 

 

 

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Not all businesses require a ton of money to start. I had a full time job in 1999 and worked part time as a contractor. When the company went out of business I just was a 1099 contractor for a long time. Started to get a ton of work that I was turning down. Instead of turning it down I just hired other people to do the work. I really didn't put any money into the business. I had up to 38 employees and contractors at one point in time.

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This Dude got all my respect. My opinion of-course NOT matter, just want to express admiration :icon_thumleft:

 

:iamwithstupid:

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yep. in law school I learned to work so long and hard at Legal Stuff ... while also being a waiter without sleep ... school 8am-4pm waiter job 4-11pm study 12-3am

also threw pizza in the air on weekends and was an IHOP short order cook

 

62 OE and wrecked means .... 6 eggs in 2 separate plates (3 eggs per plate) OE was Over Easy and Wrecked was scrambled...

I will never forget the ordering system in IHOP before computers

 

Nothing was ever (EVER) HANDED TO ME :) I would have liked it better if it was (lol) but it wasn't. My dad would pick me up from the Italian restaurants where I washed dishes at 12 years old and I would steal clams in marinara sauce for him.. I made $2.05 and hour and after 2 years I got a raise to $2.15 and hour. It hurt. I wanted $2.25

 

I saved that money and delivered papers too. I bought a Gary Klein Bicycle at 15 ... (over $1700) and went from Italy ... into Switzerland and also Yugaslavia .. on that bike when I was 17 for $50 a day and also across the USA ...

 

I recreated the Italy to Switzerland route when I was 47 after the Grande Giro on a red roadster... I climbed this hill at 17 and at 47 (30 years man) this was a very emotional moment for me

 

Wow that is very inspiring. Must have been tough staying awake though after school and work to study for three hours! I think that is what would give me the most trouble. At least with waitering you are walking around, so it will keep you awake, but for studying, you are sitting.

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