Starting a company with nothing can be more intimidating than
starting a company with millions. Fabrice Penot, the subject
of this month's cover story, knows that better than anyone.
"If someone had given us $2 million to create Le Lebo, we
would have spent it," he says. Penot really did start with
pretty damn close to nothing: He built Le Labo, his perfume
label, with little more than an idea and a lot of passion.
Penot left the world of high-end retail perfume (bye-bye,
Armani) to launch his own fragrance line with $30,000 in
outside funding--an investment funded by a corporate bonus, a
hocked car and a chorus of slammed doors.
Penot's dream of starting a perfume business was fueled by the
same elements that have driven many aspiring entrepreneurs:
corporate fatigue and a dream. After leaving the well-heeled,
well-scented halls of Armani, Penot and his business partner,
Eddie Roschi, launched their scent with a singular focus of
creating product, not overhead. In a competitive $25
billion-a-year perfume industry, the two hit their stride
taking on the rarefied airs--and rarefied marketing
machines--of Britney Spears, Jennifer Lopez and myriad elite
brands. But somehow Penot's unique product struck a chord with
buyers, and in an economic market that largely frowned on
luxury products, the $200-a-bottle label found its groove.
The duo's lack of debt and lack of fear gave them the
opportunity to focus on profit and product. Penot calls his
company "too small to fail." The company now has four
standalone boutiques worldwide, and employees are equipped
with laptops that allow them to work remotely. Fail, they did
not.
How did they do it in the face of a recession and a seemingly
endless series of bankers and VCs laughing at the very idea?
They bootstrapped it--and like so many wily 'treps, they made
smart decisions but never lost focus on the end product and
the buyer.
Starting your dream company can be intimidating, especially if
you have nothing. But it's infinitely doable with a few crafty
moves, some sweat equity and a clear vision.
Figure out intelligent ways to bootstrap, no matter what your
business is (see our list of start-for-nothing resources). In
a market that saw a 47 percent decline in VC funding and
lending last year, figuring out where to save and how to
bootstrap can mean the difference between the sweet smell of
success and the bitter whiff of defeat.
Visit
********.com for business ideas.
Disclaimer: Author is not connected or in somewhat related to the company
BY A.COSPER | April 14, 2010|
The Smell of Success | Entrepreneur.com
Smell of Success
