The tales of three entrepreneurs who launched companies — for less than $150

[cbdo2007]

Start-Ups on a Shoestring

The tales of three entrepreneurs who launched companies—for less than $150

By COLLEEN DEBAISE, SARAH E. NEEDLEMAN and EMILY MALTBY

You don't have to break the bank to start a business.

For many would-be entrepreneurs, money is the insurmountable hurdle. They hunger to strike out on their own, but don't have a big pile of cash to invest in a start-up that might not churn a profit for years to come. And they're reluctant to stake what cash they do have while the economy is still shaky.

We decided to see if you could launch a venture for less than people think. A lot less. We set out to find bootstrapping business owners who started companies in recent years—without shelling out more than a couple of hundred dollars.

The ground rules: The entrepreneurs had to be either paying themselves a salary or reinvesting substantial profits in the business, as well as planning to continue down the entrepreneurial path for some time to come. We also nixed people who opened consulting firms in fields where they had already built careers. While that's certainly entrepreneurial, we wanted people who were truly starting from scratch.

http://online.wsj.com/article/SB10001424052748703720504575376664285510930.html?mod=googlenews_wsj

[Ezlivin]

1. And there are those of us who started companies

and made about $150.

Ah, owning your own business. You get to be your own boss only to discover he's a prick.

[Fumesucker]

2. Or even worse, a moron..

Pricks can make money, in fact it often takes being a prick to make money.

Morons generally don't make any money, even if they're pricks.

[NashVegas]

4. Did You Read the Article?

The first person mentioned started making better money when she over-charged for shipping.

The second guy (food tour operator) might be doing good now, but as soon as people in his town catch onto what Meetup is doing, he's toast.

The last one is essentially the "business manager" half of a partnership. Nothing wrong with that, but he's definitely making his money by successfully riding the coat of the guy doing the physical work.

[Fumesucker]

5. No, but none of that surprises me..

Insensitive pricks are just better at making hard nosed business deals that make them profit.

And the one you say will be toast will simply move to another location or come up with another scammy type of business.

When I shop ebay I'm astounded at the shipping charges on some items, and yet when I sell there ebay often will reject what I consider reasonable shipping charges as being "too high"..

[PDJane]

6. The most outrageous shipping cost

on eBay was a pair of shears that cost $40.00 to ship. However, when I received said shears, there was also a pair of freebie pinking shears, so I didn't make a peep!

[pitohui]

10. did YOU read it? the first woman admits she's never taken a salary

she isn't making money, she's entertaining herself while living off her husband or credit cards or whatever

SHE ADMITS IT, read for comprehension, she says it in cold black and white

[readmoreoften]

13. I liv off my huzband and I is an antrapernor! Sea all the poor peoples is STOOPIDS!

I has guts.

[NashVegas]

19. And a Lovely Day To You, Too

Have a Xanax

[Hannah Bell]

14. so essentially, all three of the "successful businesses" are scams/rip-offs.

[readmoreoften]

15. I made a gazillion selling AMWAY!1! I'm my own boss!1!!!

Would you like to buy some Herbalife?

[Hannah Bell]

16. lol. i hear that in real life. most awfully, from coworkers over the years. and you feel

obligated to buy something.

[NashVegas]

20. Maybe Not Entirely

We'll say 75%, with potential.

My real problem with this article and what it describes is the "perception is reality," mindset. I wouldn't mind clearing $60k in a year, myself.

[cbdo2007]

3. At least you got to take some write-offs? :)

Just trying to find the bright side of losing money.

[customerserviceguy]

7. It can be done with service businesses

I started a tax accounting business on a shoestring. It helped that my then-spouse had an income to support us while I got things off the ground. I also started a computer repair and laptop sales business in a small town, it helped that my rent was laughably low compared to what gets charged around here.

I've also known people who did the eBay thing, one of my friends in the aforementioned small town would buy baby clothes at garage sales for cheap, then re-sell them on eBay, enabling her to make a decent modest side income (her husband made the main income) while still being able to be a stay-at-home mom with her baby. It was probably more income than she could have made if she had worked outside the home and paid for daycare.

[My Good Babushka]

8. I have a business, almost no start up cost

www.mygoodbabushka.blogspot.com
I like to paint portraits from people's vintage family photos.
I also have no advertising budget, so if you would be kind and spread the word, that would be awesome.

[david13]

12. Oh. Wasn't it John James Audubon who earned his living that way?

And then gave him the money to go out and paint the birds? After he got out of debtor's prison?
I think so.
Post some of your works, with the permission of the client, and let people see.
dc

[cbdo2007]

17. cool stuff

Thanks for sharing and good luck!

[pitohui]

9. i'm so tired of this bootstrapper shit -- the first woman has never taken a dime of salary!!!

who the fuck can afford to start a business and live for months or years on nothing?

they find three people in the entire country who hit the lottery, i can find somebody who hit the lottery every fucking week, that doesn't mean YOU are going to hit the lottery

i know LOTS of people who got into making jewelry (the first business was a chick who sold bracelets), far from making a living wage, several of them got homeless and i eventually lost track of them -- the jewelry business is dangerous, violent, insular, and for living money open to only a few people w. connections, i don't know the "real" story behind the chick in the article but you can be sure we're not getting it -- PLUS IF YOU READ THE ARTICLE SHE HAS NEVER TAKEN A SALARY, IN OTHER WORDS SHE HAS SPENT $150 AND A BUTT LOAD OF TIME TO EARN ZERO, NOTHING, ZIPPO!!!! can you afford to do that? at some point, you don't have a business, you have something to point out to massage your pride, so you don't have to admit you're living off your husband or another adult with a "real" job

i've made part time money buy and sell in the jewelry business but i can see reality from here and you're not gonna live off of it without something else going on

[slampoet]

18. I know what you mean. A lot of these articles you find out later it is "Doctors' Wives" businesses

and not having a salary drawn is a BIG SIGN.

[xchrom]

11. Recommend - my experience is - it's much nicer working for yourself. Nt

[old mark]

21. I tried and failed at this several times...actually had a business photographing pets and animals

on site - a portable studio. I did show horses, dogs, parrots, not so much cats - they are too uncontrolable.

I lost about $25,000 over a 4 year period. My plan was to do it part time while supporting it with my day job (Drafting and design) and giving myself a timeling of 5 years to see a profit. After 4 years, I was very depressed and losing money every month. I found a very fine pro photographer in a nearby town and spoke with him...he had a beautiful studio, great ads in the phone book, even on busses! Turned out he was still working in a steel mill to support his business...after 10 years!
I finished up a few outstanding commitments and quit in disgust.

My portable studio and my 4x5 view camera sold off cheap to pay rent, my 35mm outfits went for next to nothing...I still have a complete 35mm outfit in the downstairs closet and even use it occasionally for nostalgia...for the good old days when I enjoyed photography as a hobby, before I started to dislike it as a job.
FWIW, I also found out that one of my "competitors" had a slight edge - He was making around $30,000 a year from a trust fund before he ever made a dime out of his business...hard to compete with that.

If you think you might want to try, good luck - but don't quit a real job to do it if you expect to eat frequently.

mark

[Hannah Bell]

23. The trust fund factor is strong in a lot of things, I've ruefully come to learn.

And completely hidden in media reports of things such as you mention.

I have two long-time friends with the equivalent of trust funds. When I was younger I didn't get it -- how they managed to have homes, cars, etc. without ever having steady jobs.

Now I get it.

They don't talk about it. I had to figure it out for myself, putting the pieces together slowly.

Same thing in media reports about youthful activists, youthful entrepreneurs, travelers, authors, interns, etc.

When you check into their backgrounds, 9 times out of 10 you find money.

[Brickbat]

22. The fact that the first person has never taken a salary and we should admire and celebrate her

anyway just reinforces the great lie that "business doing well" = strong economy, even if individual people aren't making any money. Sales are up! Costs are down! Things are great!