You may think it's nearly impossible to start a business
without a lot of money, but think again--some of the biggest
success stories have had extremely humble beginnings. Don't
believe us? You will after you read the startup stories of the
following four businesses. These entrepreneurs built successful
ventures with less than $1,000 and are now calling the shots
instead of working for someone else. So don't be afraid to cash
in all your loose change--it's time to realize that money
concerns don't have to hold you back and, yes, you can live
your dream!
Sassybax
Startup costs: $970
Amanda Horan Kennedy, 45, was frustrated with the way her bra's
back strap looked beneath a tight-fitting cashmere sweater. Even
after scouring the finer department stores, she was unable to find
a bra that did not accentuate the unsightly appearance of
"back fat." On Valentine's Day in 2003, while her
husband waited patiently for her to get dressed, inspiration
suddenly struck Horan Kennedy: She cut the legs and crotch off of a
pair of control-top pantyhose, slipped it over her head and onto
her torso, and put on her cashmere sweater. "Hallelujah!"
said Horan Kennedy, and the Sassybax prototype was born.
A psychotherapist at the time, Horan Kennedy had already
drastically cut back her hours and patients to undergo two
surgeries for brain aneurysms. She developed the prototype during
her year of recovery, feeling certain she could help women in other
ways outside of therapy.
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Every step of the way, she cut expenditures to little or
nothing. Her husband, Bruce, 54, a former lawyer who had started a
business with three partners, drew up a nondisclosure agreement for
manufacturers. Meanwhile, Horan Kennedy used frequent-flier miles
on airline tickets; stayed with her sister, who lived near the
factories under consideration; and got the factory she selected to
do R&D for free.
Bruce and his partners decided to close their company, and he
became Sassybax's CFO, suggesting they sell their home to cut
out the expenses of a mortgage and property taxes. They also
auctioned off their 1,500 collectible bottles of wine. "Every
dime we cut back, every penny we saved went toward the business,
which is still true," says Horan Kennedy. Renting a home in
Marina Del Rey, California, near the Los Angeles airport, was
beneficial to Horan Kennedy, who travels frequently to different
retail locations and her three factories for business. She also
sold her car--a courageous move in Los Angeles.
After designing the final prototype--a bra that has no seams or
hardware, and provides support through microfiber nylon and
spandex--Horan Kennedy attended an apparel trade show. She rented
showroom space from a ready-to-wear apparel rep for the LA Mart, a
trade show venue, where she rang up $2,800 in orders from specialty
boutiques. The business soon took over the couple's lives.
"It owns you. You live it, breathe it, eat it, sleep it,"
says Horan Kennedy. "You wake up in the middle of the night
and think about [it]. I couldn't stop. It owned me." The
garage became (and still is) their warehouse, and to fulfill that
first order from the LA Mart, they enlisted the help of friends,
offering free Sassybax bras in return--something they continue to
do today.
One lingerie rep was lukewarm about Sassybax until she tried it
on and found that the bra really was comfortable, supportive
and flattering. With the rep onboard, Sassybax reached
additional stores and landed in Neiman Marcus in March 2004,
prompting Horan Kennedy to focus on Sassybax full time.
Horan Kennedy, who still works from a home office, estimates
2004 sales at $750,000. She is developing strapless, augmentation,
and racerback bras to extend the line beyond the six versions
currently available in stores and on the website www.sassybax.com.
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