Most people who aspire to start their own enterprises cannot cobble together the millions that many books suggest are needed to launch a business. Understanding that, and drawing from our experiences of bootstrapping businesses, Bootstrap Business outlines how a person can take $5,000 and build it into a successful business.
When we started writing this book, we decided to create a company as a test case to prove the principles we are setting forth. So we each came to the table with $2,500 and started Everest Web SEO, a company built around search engine optimization. Within the first few months, we had won deals with S&K Menswear, Warner Music Group, Franklin Covey, Shop At Home, and The New York Times. During these early months, we generated over $70,000 in total sales, with net profit margins of approximately 85 percent. Six months into the business, we merged with a New York online marketing firm, Interactive Acquisition, forming a new company, CastleWave, LLC. At the end of seven months, our monthly revenue was at $70,000 per month, with a $40,000-per-month net profit. After completing the first year of business we had sixteen employees and were generating approximately $110,000 of revenue at over 65 percent net margin. Not bad for being a Bootstrap Business.
The principles taught in Bootstrap Business: A Step-by-Step Business Survival Guide work. There is no denying it. The concepts taught are practical, sensible, straightforward teachings, but they are the culmination of years and years of learning from the school of hard knocks.
Rich can now add CastleWave to his grand total of 8 successfully bootstrapped businesses.