It sounds frightening, but bootstrappers report they not only
learned precious lessons from cutting corners but also had fun in
the process. Surviving can be a pretty exciting game. It certainly
was for the Franz brothers.
In 1988, Bob Franz, a former salesperson for Hughes Missile
Systems, launched Tucson, Arizona-based Executive Office Systems.
With minimal capital and only one technician, Franz set up the fax
and copy machine dealership in his home.
Although he didn't realize what the word meant at the time,
Franz was a natural bootstrapper. His kitchen table served as his
desk, his garage was his warehouse, and a decrepit pickup truck
delivered the merchandise. Ten months after starting his business,
he rented an office in a rundown part of the city, about 30 miles
from the city's business center.
Content Continues Below
In 1991, Franz's brother, Ron, joined the company as an
equal partner, and they changed the name of the company to Copier
Brothers. Even though the business was profitable, Ron says the two
men continued to bootstrap. "We were almost frugal to a
fault," he says.
Ron adds that bootstrapping has become a way of life for the two
brothers. "I guess we developed a budget mentality, and it
never went away," he says. "Even today, we spend very
carefully. While many of our successful competitors drive luxury
cars, my brother and I drive pickups."
Running a tight ship during those early years certainly paid
off. This year, the Franz brothers project sales of $11 million, a
substantial increase over last year's $8 million.
As these entrepreneurs proved, pulling yourself up by your
bootstraps makes good sense when other cash avenues are closed. It
may even teach you lessons that will keep your company profitable
well into the future.
Page
1 |
2 |
3 | 4 |
5 |
6 