12 Months to $1 Million

Get funding strategically

Instructions

Bootstrap your business initially to test viability and control costs.
Start your business with minimal expenses by utilizing available resources and keeping overheads low, similar to how Dollar Shave Club began. Consider using excess inventory or minimal cost strategies to test your product's market fit without the need for significant upfront investment. You can start by funding it with your own savings or revenue generated from initial sales to fund your business.
Create a compelling marketing campaign.
Develop a low-cost, high-impact marketing strategy to attract customers. Think about what makes your product unique and how you can communicate this in an engaging way. Ask yourself, "What key message do I want to convey, and how can I make it memorable?" Build your campaign from that.
Reinvest profits into customer acquisition.
Once you have your sales coming in, use the profits to fund further customer acquisition efforts. This reinvestment helps maintain a steady flow of new customers. Consider various advertising channels like television, radio, and social media to reach a broader audience. Reflect on which channels your target customers are most likely to use.
Focus on proving sales before seeking external funding.
Before you look for external investors, make sure you have a proven ability to generate sales first. This builds confidence in potential investors and shows that your business model is viable.
Consider raising your prices to manage demand.
If your product sells faster than you can restock, consider raising prices to moderate the sales pace. This strategy helps manage inventory and maintains cash flow, preventing stockouts.
Explore crowdfunding to raise capital without giving up equity.
Use platforms like Kickstarter to raise money and create a community of invested customers. When crowdfunding, ensure you have a compelling video and a list of initial supporters to share your campaign. Reflect on how you can present your project in an emotionally engaging way and who in your network can help promote it.
Take on debts strategically.
If you decide to take on debt, ensure it’s used for high-return aspects of your business like inventory that has proven sales potential. Avoid using debt for speculative investments. Analyze potential ROI on any debt you take on to ensure it aligns with growth objectives and can be serviced by the business's cash flow.