THE STINGY STARTUP

I'm stingy and I'm proud of the reputation.

Ingvar Kamprad, Founder of IKEA

THE STINGY STARTUP

Published by StingyStartup.com Editor: Claudette Ennevor All cartoons produced using Stripgenerator. Copyright 2013 All rights reserved. ISBN-13: 978-1491034484 ISBN-10: 1491034483

THE STINGY STARTUP

CONTENTS

CONTENTS

Unless commitment is made, there are only promises and hopes... but no plans.
Peter Drucker

THE STINGY STARTUP

Welcome All About You Realistic Goals Product Choice One Minute Pitch Who You Know Social Media Website & App eBay & Markets So Start Already! Legal Essentials Keep it Steady Select People Cash is King Customer is God Where is the End? About the Author

13 23 35 51 69 81 103 123 139 157 169 185 203 221 233 249 260

Dedicated to my Mother.

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ACKNOWEDGMENTS
Li Qi, Prof. JB Kassarjian. With special thanks to: Paul Meagher, Robert Fitzgerald, Prof. Janelle Schubert and Prof. Allan Cohen.

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WHO THIS BOOK IS FOR

This book is designed for the everyday entrepreneur you will most likely have a burning desire to start a business but limited resources. The Stingy Startup is for everyday people interested in the most natural process in the world, creating and selling stuff to other people in order to make a living. People have been doing this since society began and today it is easier than ever before. The Stingy Startup will show you how. You could be:

Working Full Timelooking to make the leap. Working Part-Timelooking to augment your income. Stay at Home Parentwho have some chunks of time available during the day. Recently Unemployedwith no luck on the job hunt. Studentswanting additional income during semester.

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HOW TO READ THIS BOOK

The book is simple to read and many of you will be able to read it in one or two afternoons. Its meant to be read in order, rather than skipping from one chapter to another. Each chapter builds on the last. The book provides practical approaches and examples to starting businesses with lots of easy to understand examples. Throughout the book we have a cartoon strip featuring Mr Stingy, he will simplify the main themes and messages of each section of the book for you to enhance learning in a fun way. We use the environment of so called austerity that we face to the your advantage in order to instill a principle of frugality or stinginesssimply put this means we encourage you to spend very little old money and instead focus you on your customers and sales to create new money. So, lets begin!

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WELCOME

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WELCOME

"The way to wealth depends on just two words, industry and frugality."
Benjamin Franklin

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Starting a Small Business with No Money

We all feel it. Were living in the age of austerity. We are all short on cash. But, the good news is that The Stingy Startup likes austerity. The Stingy Startup knows that actually, right now, we have more resources on this planet than ever before in history. In fact, most of the resources you need to start your business are within your reach, they are free and readily available. It may well be why there is a recession, everything has become free and the economy is waiting for more Stingy Startups to kick start the next

Dont just skim for nuggets the magic is in understanding the whole picture.
wave of innovation. Could that be you? Now is the time for The Stingy Startup. Starting a new business with the

Mr Stingy Says
Dont just read my speech bubbles, read the whole book!

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WELCOME

principles of stinginess not spending any money and not asking banks or lenders for any money but instead, we fo-

If youve gone into debt or borrowed money then you are doing it wrong.
cus on fresh ideas, products or services and use resources we have this is the greatest service you can do for our economy and society. This is a 16 step guide to creating a small business with no money. Remember this: if you have gone into debt, taken out a credit card or asked friends or family for an "investment" on your next big idea, then, you're doing it wrong! Anyone can start a small business, begin to make an income for themselves and become independent - with no money. The resources are all herealso, on our website: www.stingystartup.com, you will find direct links to free use-

Mr Stingy at the Bank...

Come into the Bank & a get a credit card.

No way!

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ful resources and websites and forums to help you connect with other stingy entrepreneurs. Your goal is to get your first sale as soon as possible. Reading this book should be simple and straightforward. You should have no difficulty reading it within 1 or 2 afternoons. But, you should take notes and come back to it as you refine your thinking. We have a reflections section at the back of each chapter which gives you the opportunity to think about the main topics of each chapter. This guide is focused on guiding you through the first 6 months only. You want to get to the point within 6 months where you have a steady stable source of additional income

Your 6 month goal is to create a steady stable source of additional income.

for a clearly defined set of activities a regular routine or a list of daily or weekly tasks for your business. These tasks will

Mr Stingy is focused!
I only think about the next 2 weeks and next 6 months.

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WELCOME

form the basis of a job or a number of jobs that you can create. Your goal is to get regular sales and demand for your products or services and it may well be that initially you are

Your number 1 goal is to get your first sale within 2 weeks from today.
the one making the products or delivering the services but the idea is that within 6 months you should be in a position where you can decide whether or not to hire people and to grow the business. It is always vital to remember, that The Stingy Startup does not spend money unnecessarily - your goal is to save as much money as possible for later if and when the business really needs it. So, if you decide to hire someone, that should be your decision. You are not dependent on money from investors, banks or others. Does this make sense? If the message is getting through then you should feel more relaxed and ready, now. You are not looking to impress anyone except your customers, you dont need A Stingy one track mind...
Sell!

SALE!

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to go cap in hand to anyone and if anyone comes to you, you can always say, sorry mate, Im stingy, its who I am.

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WELCOME

STINGY SUMMARY/REFLECTIONS

If youve gone into debt or borrowed money then you are doing it wrong.

Your 6 month goal is to create a stable source of additional income..

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Use this section to reflect on the main points of the chapter.

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ALL ABOUT YOU

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ALL ABOUT YOU

"Thrift is not an affair of the pocket, but an affair of character."

S.W. Straus

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It all starts with you, what are your strengths?

We want you to start with a simple question, what resources do you have? For example if you are in the kitchen and you have a few dozen ingredients, but no money - you can't go to the supermarket, so, you improvise, and create something interesting with the ingredients in your cupboard. Maybe you dice an onion and a pepper, fry them up and whisk in a couple of eggs and youve got: a Spanish omelet! That is the principle of The Stingy Startup. The Stingy Startup is not interested in spending any money and

Dont shop for new ingredients for a recipe, improvise with what you have.
only wants to use what resources are in hand. Basic everyday ingredients only, nothing fancy. Keep it simple.

Cooking with Chef Singy says Chef Stingy

I dont buy exotic ingredients. I make do with what I have.

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ALL ABOUT YOU

Assemble a list on a piece of paper. Write down all the resources you think you have and organize them into three

Your number 1 goal is to get your first sale within 2 weeks from today.
main groups, 1. skills, 2. resources, 3. people you know.

The next few pages will give you some ideas. But, its best to follow along actively participating and thinking rather than to just read passively, so, get out a piece of paper!

Mr Stingy gets organized Its easy, make a list!

Skills Resources People

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The skills that you have could relate to you being able to produce or make a product for example you could have invented a new type of light bulb, or it could be more simple, like you can construct a shed or cook omelets or you are an expert potter or can produce candles ; or you know how to do something and can deliver a service for example you could be great at preparing household budgets or you could be a wonderful gardener or can walk dogs, teach karate, perhaps youre a physiotherapist or an expert on a topic like computers or computer games and can write articles or offer support services. Or you could be a good negotiator, someone that can organize a good deal or partnership with some-

Skills: make, do, talk.

one who produces or delivers a service. This ability to converse with others is a skill you can learn and The Stingy Startup will help you by providing relevant examples. It will be useful for you to find other service providers or producMr Stingys Skills
I can make things, do things and I can talk with people!

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ALL ABOUT YOU

ers, to find vendors and most importantly, to talk with your customers.

Resources: Ingredients, Space, Equipment

Resources could be anything from ingredients for muffins for your muffin delivery service, or any ingredient for any product or service you are thinking of creating or delivering like wood or nails, seeds for planting, light bulbs, candle wax whatever it may be. You can also list creating websites, apps, social media pages and having access to eBay and other vibrant markets as resources as they are freely available in upcoming chapters we will show you where and how to access these resources. Resources also include space you can work out of like a room for an office or a hall to practice karate, or a nearby park you can walk dogs in if you are delivering a dog walking service. Finally, list what

Mr Stingy has Resources

Everything I need to run my business I already have!

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equipment you have such as a computer and internet access, smart phone, a special table for doing physiotherapy, knives for carving candles, a lawn mower, shovels or trowels for gardening jobs. Finally, your list of people you know of could include vendors like the owner of a local caf where you would like to test out selling your muffins, or a local garden store where youd like to market your home made pottery - or people who could be community gatekeepers who can provide you access to potential customers like a PTA member or Church leader who organizes events regularly and may be willing to let you bring in your new product to events at a discount

People: vendors, gatekeepers, partners, key customers and customers.

price so you can test out your new business idea. Or they could be potential partners, another business owner who

Mr Stingy Likes People

Im the King of Networking!

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ALL ABOUT YOU

might be able to connect you with contacts who can supply discounted products that you could sell. Finally, you could know some key customers or even have a list of a range of customers yourself that you can approach directly to see if they would be the first or pilot customers for your new small business. There are no wrong answers here: the main objective is to get you to start thinking of all the different strengths you have and how to organize them.