When Kevin first started his business, he did not have any capital, debt or investors and he didn’t have access to any money, bank loans, or credit cards. In episode 205 of Journey to $100 Million, Kevin shares how he was able to create his first business without utilizing any of these factors.
Fast forward to today at Array Digital, Erik and Kevin have built their company without the financial help from outside sources. We do have lines of credit, but we have not had to rely on this credit or go into debt.
With Kevin’s business, all he needed to get started was a computer, some software, and the internet. There was no need for overhead, employees, an office, etc. He didn’t want to make the mistake of prioritizing these expenses from the beginning and slipping into debt before any profit had been made. The key is to think about how you can get your work done the easy and cheap way while still getting good results for your customers. There is no need to break the bank.
Before you start spending money on all these extra expenses, make sure that you are good at what you are doing, people are accepting your product or service, and you have the ability to make money. Once all of that is done, you can start to reinvest by getting an office and hiring employees, but you don’t have to jump on that from the get-go.