Page 110 - The Magic of Tiny Business

Chapter Six  Tiny Business Is Lean Business

cash and taking out credit cards. I invested $2,000 of my
own savings and used low- and no-interest credit cards to
buy inventory and cover overhead. I managed the credit
cards with a spreadsheet, negotiating extensions and flip-
ping cards when the interest rates were about to go up. I had
about $100,000 out on credit cards with cash advances and
never paid more than 2 percent interest on any balance.

The credit card rules here were simple:

® I paid off all credit card balances in full every
month OR . . .

® If the interest rates were low and I had to, I carried
the balance, scheduling payments monthly and
always paying more than the minimum.

® I used the credit cards for essential business needs
only, and they never left my office.

Over the course of eighteen long years I bootstrapped
and created a market. I grew slow and steady, which gave
me plenty of time to enjoy my growing family. I worked
regular business hours. It was only after grossing $3 mil-
lion and seeing my business going into a free fall during
the recession that I looked to secure backup money.

Luckily, I had already started talks with my banker and
got an SBA (Small Business Administration) loan3 when the
recession hit. I had also refinanced my house to pull cash out
just in case the SBA money wasn’t enough. This was before
we could get a credit line big enough with a favorable rate.

Since I bootstrapped, I worked 100 percent for myself,
but I realize not all businesses can be built like this. If you

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