Subscribe to Entrepreneur for $5

With as Little as $500, These Entrepreneurs Created Multimillion-Dollar Businesses. Learn Their Secrets.

This story appears in the March 2014 issue of Start Up.

Successfully launching two tech businesses with almost no startup money made it easy for Mike Michalowicz to attract venture capital for his next enterprise, an angel investing company called Obsidian Launch. But in a clear case of "be careful what you wish for," Michalowicz took the money, then saw his new startup flop, victimized by what he says in hindsight was poor decision-making brought on by a lack of urgency.

"I've started a business with nothing, and I've started one with a lot of money, and I have to say I'd rather start with nothing," says Michalowicz, author of The Toilet Paper Entrepreneur, whose latest venture is New Jersey profit and growth accelerator Provendus Group. "Nothing forces you to make better and faster decisions, because you feel the pain of every mistake acutely. You're more apt to respond quickly to what works and what doesn't when you don't have a lot of money. When I failed with Obsidian Launch, I didn't feel the pain. I just threw more money and more time at it, which made things worse."

Continue reading this article -- and everything on Entrepreneur!

Become a member to get unlimited access and support the voices you want to hear more from. Get full access to Entrepreneur for just $5!

Get 3 months free with code ZENDESK

Presented by zendesk

Get 3 months free with code