S7 W8 E29-32, Reviewing the Art of Small Business Bootstrapping with Bill Kelly

The Entrepreneur’s Edge with Bill Kelly
Expert Advice on Buying and Selling a Business on the IBGR. Network ...The World of Business at Your Fingertips


S7 W8 E29-32, 
Reviewing the Art of Small Business Bootstrapping

Welcome to week 8 of the Entrepreneur’s Edge with Bill Kelly

Quote of the Week: “It’s not in the Dreaming, it’s in the Doing”  –  Mark Cuban 

Week in Review: This is our last session of the year. 2021 was an incredible year for business sales and purchases in Virginia. But the promise of 2022 looks even better! 

If you, or someone you know, is interested in selling or buying a business, considering purchasing a franchise, or perhaps you have a successful business and are thinking of becoming a franchise. Please contact me. My team and I can give you solid advice and help you accomplish these goals. 

As a Senior Business Advisor and Virginia Commercial Real Estate Agent I’m proud to be a part of Transworld Business Advisors of Richmond. Transworld is the largest seller of small businesses in the US with over 300 offices in 21 countries. We have the experience and resources to advise you and professionally manage your business sale and acquisition transactions.

Contact me, Bill Kelly, Transworld Business Advisors of Richmond, VA ● 804-510-0670 ● bkelly@tworld.com 

Episode 29 Small Business in America
The most successful economic system in the history of the world.

1. Capitalism.  There is no question that capitalism has been the most successful economic system the world has ever seen. It has helped lift billions of people out of poverty, and it has helped enhance the wealth, health, and education of people around the world. Capitalism enables competition, innovation, and choice.
     
2. Small Business. Small business constitutes a major force in the U.S. economy. There are more than twenty-seven million small businesses in this country, and they generate about 43% of our gross domestic product. Small businesses create over 66% new jobs each year. 
    
3. Reasons for Starting a Business of Your Own. Changing your economic circumstances is number one. Charting your own destiny, owning your time, following your passion, and being unemployed or unemployable are among the top reasons given. 
   
   
   
4. Greatest Benefit of Owning a Small Business. The ability to grow financially and take advantage of tax benefits afforded to small business owners. As a small business begins to grow, you can also incorporate. This provides owner's with protection of their personal assets from legal entanglements brought on by their business.
   
   
   
5. Bootstrapping refers to the process of starting a company with little or no money. But also includes companies with some capital gained from personal savings, funds  borrowed or invested from family or friends, as well as income from initial sales. The name suggests, entrepreneurs must “pull themselves up by their bootstraps'' by using their own labor and capital to launch. Experts say that a majority of all startups (75% to 85%) are bootstrapped.  
   
    

Tags: Bootstrapping, Business startup, Business Brokers, Small Business, Consulting,  Transworld Business Advisors 

• EPISODE 30 How Can I Start a Business with Very Little Money?
  Choosing the right business for you may be key to your success.   
  
  
  

1. Every Business Needs Money to Operate Finding start-up capital is hard but not impossible. Cash flow from initial sales and personal savings are the most common sources. But there are also Angel Investors all around you.
   
   
   
2. Keep Your Job Many people entrepreneurs keep their current job and work their business as a side hustle until they can go full time.
   
   
   
3. Use the Cash Flow of your Business This simple method of raising capital can work well if you have a flexible job or if you choose a job that can accommodate your work hours.
   
   
   
4. Live Like Know Others So You Can Live Like No Others This saying made famous by many “Debt Free Living” coaches, can apply easily to the bootstrappers early years.
   
   
   
5. Before you Borrow Money, Try a 30-Day Blitz. I love the 30-day blitz’s. Anyone can do almost anything for 30-days, so make a sales plan that’s hard and stick to it!
   
   
   
6. When You Do Borrow, Make it Official and Short. The quickest way to lose family or friends is to barrow money from them and not pay it back.  Always give them a written IOU with a payment plan, even if it small, make a payment every month.
   
   
   
   

Tags: Finding Capital, Bootstrapping, Business Start Up, Business Advise, Starting a Business, Transworld Business Advisors 

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Episode 31 What Kind of Business Can I Start with Very Little Money?
The world is changing but service businesses are still king.

1. Most Businesses are Started by A Technician Having an Entrepreneurial Seizure This famous line was written by Michael Gerber in the “E-Myth Revisited” in 2004. His theory is that most small businesses fail because they are started by Technicians, who know nothing about running a business.
    
   
2. Starting an On-line Business Today, technology has changed the way Bootstrappers approach a business startup. However, on-line marketing requires a steep learning curve for most and finding products and services to sell can be difficult.
   
   
   
3. Service Business are the Most Common to Bootstrap Service businesses such as, painting, lawn maintenance, cleaning, handy-man, teaching, auto repair/detailing, carpentry, computer repair, and healthcare are by far the best businesses to start with little or no money. 
   
   
   
4. Ready, Aim, Fire or Ready, Fire, Aim Making a plan and following the plan is the preferred way to start, but it may not allow for intuition and chance. Don’t let the paralysis of analysis deter you.
   
   
   

Tags: The E-Myth, Bootstrapping, Business Start-up, Choosing a Business, Business Brokers,  Buying a Business, Transworld Business Advisors   ​

Episode 32 What are the keys to Bootstrapping a Successful Business? 
Every “how to start a business book” will tell you it’s about managing money…it’s certainly part of it, but not all. 

1. Most Small Businesses Fail Within Five Years In my experience, the difference between those who make it and those that don’t are three things.
    
2. Find a Mentor Don’t assume you know it all because chances are you don’t. Find a mentor, join a group, get advice from people who have the skills and knowledge you need. 
   
   
   
3. Imagine You are the Customer and Create Your Perfect Experience When you do this, the economic benefits to your business will be enormous and your chances of survival will be greatly enhanced.
   
   
   
4. Maintain Your Records Paperwork and Taxes is a pain for most entrepreneurs and to Bootstrappers particularly. But don’t let it get out of control. Keep your business and personal expenses separate.
   
   
   
5. Always Ask Your Customers for Testimonials, Referrals, and Guidance You will be surprised how powerful this is for a small business.
    
6. Be Honest, Understanding, and Helpful The customer is not always right, but a poor experience with one, can cost you an initial experience with many.
   
   
   

Tags: Building a Business, Bootstrapping, Business Start-up, Choosing a Business, Business Brokers, Buying a Business, Transworld Business Advisors  


Short Bio: Bill Kelly is a Senior Business Broker and Franchise Consultant for Transworld Business Advisors of Richmond, VA. He is also a Licensed Virginia Commercial Real Estate Agent. Bill has been a lifelong Entrepreneur and has personally started or purchased and then sold eleven businesses. He lives in Richmond, Virginia, with his wife Rebecca, and has two daughters, and one granddaughter. 
   
Contact links: bkelly@tworld.com

Social Media:     
Facebook: https://www.facebook.com/BillKelly1955
LinkedIn: https://www.linkedin.com/in/billkellyprofile/
Website:     https://www.tworld.com/agent/billkelly/

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