Hotline: 1800 102 2007
Hotline: 1800 102 2007
Search Business Opportunities
2010-05-26

The story of self-funding an enterprise

What does self funding a venture really entail?

Entrepreneurs are known for their risk bearing ability; even then not many have the ability to put all their savings in their venture. Most of them turn to friends, family or investors to get started. But Rakesh Shukla believes, “It’s right only when you start the game with your own skin.”

 

When Rakesh and his wife, Helen started their own venture, The Writers Block (Twb.in), they decided to fund it all by themselves and not turn to any of their family or friends for help. Not just that, both of them also quit their jobs and so had no other source of income but Twb.in.

 

“We had put all the liquid cash we had in the company. All the money that we had in our accounts, the insurance policies and other investments were put into the Twb.in,” Shukla says.

 

Twb.in is a technical communication outsourcing company that provides services in technical communication and training development for IT products & outsourcing, ITES, banking, financial, aerospace, defense, ship building to hi-tech manufacturing and discrete & process manufacturing. Cisco, Accenture, Samsung, Siemens, AOL, Intel, Infosys, Wipro, Pratt & Whitney, Honeywell, DRDO, and HAL are some of its clients.

 

Not being capital intensive, there was not much of buying required, which reduced capital investment. But the cost of infrastructure like setting up an office and other operational expenses still had to be borne. The total investment came up to a little less than Rs 50 lakhs.

 

“The day we opened the doors of our company there were three other people working for us apart from Helen and me. Their salaries had to be paid. All these costs were met with from our personal savings for a few months,” Shukla reveals.

 

But why did Rakesh not seek funding from investors? “We were of the opinion that the effort that we would put in convincing investors ‘that we were business worthy’ could be used for doing actual business. Secondly, we were not sure what would it be like to have an outsider fund our company,” he states.

 

“The pressure of not having an alternate source of income was immense. It caused a lot of stress personally also. And since both, my wife and me had left our jobs it was even more stressful,” he says.

 

He sums up by saying, “May be it was the pressure and the stress of self-funding that made success imperative for us. With no other way to sustain, we became more focused on what we were doing.”

Within the first quarter Twb.in grew to be profitable. The company which started with five employees including the Shukla couple has grown to be a hundred employee company, today.

 

Self-funding bore fruits for Rakesh and Helen Shukla! What have you decided?

Related opportunities
  • Precious Jewellery
    About Us:   Unique Franchise opportunity with assured return of 10 %..
    Locations looking for expansion Uttar pradesh
    Establishment year 1999
    Franchising Launch Date 2018
    Investment size Rs. 50lac - 1 Cr.
    Space required 250
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater NOIDA Uttar pradesh
  • Others Food Service
    About Us:  When coffee lovers brew coffee for you, you know..
    Locations looking for expansion Tamil nadu
    Establishment year 1996
    Franchising Launch Date 2005
    Investment size Rs. 2lac - 5lac
    Space required 50
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Chennai Tamil nadu
  • About Us: Cyber Security Academy (CSA) is a brand of SkillCube...
    Locations looking for expansion Delhi
    Establishment year 2019
    Franchising Launch Date 2019
    Investment size Rs. 30lac - 50lac
    Space required 1300
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater New delhi Delhi
  • About Us: After the huge success of Kids Age Newspaper, we..
    Locations looking for expansion Gujarat
    Establishment year 2006
    Franchising Launch Date 2018
    Investment size Rs. 50 K - 2lac
    Space required 1200
    Franchise Outlets No Outlets
    Franchise Type Unit
    Headquater Ahmedabad Gujarat
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities

Free Advice - Ask Our Experts