As you start a new business, everything you brainstorm and plan is underscored by the same question: how will I get the initial investment for this business? More money doesn’t guarantee more success, some of these successful Abound brands started with under $50.
However, if your idea needs to be produced in a factory or uses expensive materials, you’ll have to start out with a decent amount of cash. Whether you’re bootstrapping everything, using your savings, or getting an investor, getting the money is just the first step. After that’s accomplished you’ll have a whole world of planning and strategizing ahead of you.
We bootstrapped between my partner and I to buy our initial inventory and we each put in $20,000. We sold through the first batch, used the money to buy the second order which was triple the first, then the 3rd and you get the idea!
2) Greta McCoy, owner of Hudson & Lee Honey Simple Syrup
We used our savings to fund our initial start-up investment. The business was a few thousand dollars to start up, but then there was a long time of not making any profit, as any money we made from sales had to go back into the company. We are now finally at a place where the business is profitable and growing.
3) Sunchea Phou, owner of YaY Novelty
$50,000. It was a loan from friends and family.
4) John Bronson and Femke Veelenturf, founders of Finger Licking Dutch Stroopwafels
100K+, which came from other passive investments.
5) Heather DeSimone, owner of Leetie Lovendale
Well, we actually invested in the plastics and initial warehouse buy-out when I owned an entirely different business. When that business closed, I purchased the remaining plastics with savings. And then the business has just been self-funded by reinvesting profits up until this point.
6) Hollie Berry, owner of Hollie Berry Art
Luckily the startup cost for an artist is not high, but back in 2015 I got the nerve to commit to signing a lease on a studio space and buying a new work laptop using the money I made by painting my very first outdoor mural.
7) Brian & Megan Dalrymple, owners of Anchored NW Candle Co.
Our initial investment was $50 spent at a local Hobby Lobby on a candle making kit. We dipped into our pockets some in the very beginning to create our very first batches of candles.
However, we have built our business solely on our profits, hustling to sell our product whenever and wherever we could, to earn money to expand inventory and production.
8) Rachel Wood Joyner, owner of The Golden Type
To be honest my initial investment wasn’t much. My business started very small and organically. My first big investments were in large equipment to make my processes go more smoothly.
Some of the investments I made in the first couple years were my Macbook, a small and large plotter, a large paper cutter, notebook binder, and large supply purchases. All of the above mentioned investments were $1,500 or less individual purchases.
9) Cherryl Anderson, owner of Ayla Jane Designs
My initial investment for my business was small, it consisted of a good pair of leather scissors, an exacto knife, a cutting mat and lots of leather and earring hooks. The more I sold, the more I was able to re-invest and buy more supplies and experiment with other styles.
10) Justin Durling, owner of Cocktail Kits 2 Go
Our initial investment was about $5,000. This bought me design help, website development, and enough materials to get started. I used savings.