Nick Zamanov is the founder of AmpleFind online sporting goods retailer. He recounts how he had a difficult time leaving his apartment to work in a supermarket parking lot. This cut down on his monthly expenses and allowed him to live a dream.
My watch is on the wrist as I wake up in my Volkswagen Jetta in the backseat. It’s a cold morning in late 2015. It’s 5 AM. I leave Walmart and drive to 24 Hour Fitness. After a quick shower I am ready to head to work and browse the open WiFi hotspots in the Bay Area. From 6 a.m. until 11 p.m. I’m in the back of my car and encrypt my new website.
I moved into my Mountain View apartment on October 10, 2015. I took the essentials and necessities to my car and made it my home for the next six-months. It sounds extreme, and it was. My half-year of self-imposed hardship wasn’t a lifestyle experiment. I was also not trying to be a tourist with the limitations that other people have to live with indefinitely.
It was a practical decision for me. I had hoped to create an online platform for sportswear, but only had limited resources. However, I had the ability to lower my living costs and give my best until my money ran out, or whatever came first.
Bootstrapping, which is the creation of businesses with minimal capital, is a common part of Silicon Valley culture. About four out five of these businesses are self-financed. It is not as common to launch a business from the back of your car. However, I felt confident that I could succeed. I didn’t want to spend all my money on rent or services. Entrepreneurs leave the United States in order to finance new ventures. For me, it was the best way to eliminate my expenses and take advantage of Valley resources.
My approach is not universal. However, it taught me lessons that helped me and my company to survive in an increasingly difficult startup environment.
Venture capital was a popular funding source for many startups in 2015. This led to a boom in startups that was characterized by high-profit cultures and capital-rich businesses. Since then, funding has begun to decline. Nervous investors have devalued many companies that didn’t meet their high expectations. These wounded unicorns were forced to reconsider unnecessary costs. Dropbox recently reduced spending by suspending free transportation and restricting employee meal service. Frugality is increasing even at the top.
This is a sad reality for those in the lower ranks of the corporate world. You cannot expect future profits or borrowed investments if you start a business.
My monthly budget was $ 200 during the time I lived in my car. This allowed me to cover my basic expenses such as food and my 24-hour gym membership (especially for showers). I also made use of the city’s free WiFi.
If you don’t take advantage of the existing networks, you will not be able to live with less. This includes the free events that Stanford University holds with venture capitalists and startup founders. You can also use the search tool to find events that are closest to you, such as Meetup, Eventbrite and Facebook.
You can also seek out support from old colleagues and friends. To help me develop the product, I sought out support from a friend. It made a big difference in the speed of our product’s launch and its benefits. It is not enough to save money. What you do with your limited resources is crucial. Leveraging your network is key.
Even the most fragile startups require investment. Some are inevitable, others are preferable and can have strong long-term returns.
According to the Doing Business report by the World Bank, the average administrative cost of starting a business in the United States is $ 750. These costs include registering your company and signing an operating-and certification agreement. We also had to pay servers and customer support. Additionally, we spent a small amount on marketing our project.
Hubspot CRM, MailChimp and other tools can help you organize your customers’ details and send them emails in the early days. Each campaign spends between $ 100 and $150 on Facebook ads and Google. Google Adwords gave us the best results. We used it to test customer reactions to new features, and to gain insight into the interactions of different audiences with the product.
Looking back, I realize that I should have stayed focused on sales sooner. Before launching your product, it is important to inform people about the product and create interest. But, it doesn’t matter if you wait for the perfect product. You can release it immediately and continue to improve it.
Many great tools are available for free or with a free trial. FreshDesk is used for customer service, SendGrid to send email marketing and Trello to manage and plan internal operations. Focus your efforts and prioritize your roadmap. Make sure to invest when you have the time.
You can’t give up on a company if you don’t put your best foot forward. I knew that I would not have the time or energy to launch the site. I couldn’t live on my VW for ever. You are forced to measure up when you make a leap of faith.
In an age of part-time entrepreneurs and overtime work, this may seem surprising. There is always a chance that you don’t invest enough in your ideas or do not make the commitments. It can also mean you aren’t confident in your business. If that is the case, then why should your customers trust you? You can’t do it superficially if you want to make something happen. You must set goals once you’ve given your best effort. This could be scheduling an investor meeting, reaching out to a business incubator, accelerator, or putting up a presentation or launch date.
TechCrunch Disrupt is a great opportunity to present your product to industry professionals and receive media coverage. Don’t be discouraged if you don’t get accepted. Only 2.5% of applicants are selected for Disrupt Startup Battlefield. You can set a date for the product hunt launch so that you are hunted. HackerNews will allow you to share your story with a wider audience.
It is important to have realistic goals and not get broke.
Six months of freezing winter nights, and hot summer days spent in my car, the launch was finally completed. The new company was talked about by many people and gained some momentum. I moved into a new apartment, and was ready to face the rest of the world.
My experiment has been a part of our founding story, and I hope it conveys something to customers and employees about who and what we are as a company. Adding your personal story to your business launch can help you differentiate your brand and grab the attention of your customers.
More than that, my experience has shown me the importance of a modest budget and an ambitious schedule. You don’t have to stop paying rent and start going to the gym if you want to succeed. Most entrepreneurs will need to reduce costs and concentrate their efforts on launching a product quickly. This is what bootstrapping means, and it can be applied to self-financed businesses as well as venture capital investors.
No matter what you do, maximize your resources. To keep going, you just need enough fuel.
