Article about a local furniture & home decor store started on a shoe-string budget.
Kevin's Comments:
These two ladies did several things right in starting this business. First, they crawled before they walked. By starting as a hobby and building it into a full-time business, they discovered there was a market locally for this business. They had fun as they learned the business and did not risk the family jewels to accumulate that knowledge.
Then, when they could see demand for their product was real (and more than a flea-market business could supply) they opened a store. But they did so without borrowing money. They had already acquired a starting inventory and they found good terms for their space.
Also, they built a customer base before they opened their store. This immediate demand helped them cash flow right away.
Finally, they promoted the new store in a couple affordable and effective ways. By locating near a busy road they made use of their store presence and they added their own signage (made by a friend - to keep costs low).
All this may sound too simple to even talk about but it provides a great example for anyone starting a business. Not that everyone should follow this exact model. Clearly every business and situation has its own needs but there are some general lessons here:
1. Test before you commit.
2. Build revenue before anything else.
3. Squeeze your startup dollars to get the most from them.
4. Fund with cash and revenue before debt or investors.
5. Create awareness and exposure for your business right away.
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