“Ramen profitable” means a start-up makes just enough to pay the founders’ living expenses. It’s not rapid prototyping for business models (though it can be), but more a way of hacking the investment process. Once you cross over into ramen profitable, it completely changes your relationship with investors. It’s also great for morale.”

I was reading Inc. Magazine this month and discovered this small segment at the bottom of the page. It grabbed my attention because when I started in business, this was a similar idea. If the rent could be paid and I could survive on canned soup and tv dinners then I was able to run my business without bugging an investor. Bootstrapping became another familiar idea – This has been a way to grow our businesses without having to contact other sources for financing. Many entrepreneurs start with small sums, often $5,000 or less, and then finance their growth out of profits. Notice how I just said that the profits will be put back into the company – Will you still be paid? Of course, in fact you have the option to take out any money you would like until the company needs to have money placed back into it.

Link to Article I gathered origional statement from can be fount HERE

Tags: blog advise, doing business, inc magazine, launching a business, starting a business, sucess

This entry was posted on Tuesday, June 9th, 2009 at 7:32 pm and is filed under Entrepreneurship. You can follow any responses to this entry through the RSS 2.0 feed.