Get Your First Customer to Finance Your Business

There are many reasons why startups should go out right now and get customers. Skip the eons of planning, strategy, years of development and drum up some business.

Shawn Hessinger reminds us of another great reason — your first customer could become an investor.

He recounts an amazing story:

When Scott Mitchell founded Learning Productions in Temple, AZ., his first customer, Avnet Computer Marketing Group, was so impressed with his pitch they offered him office space, access to a computer network, equipment, covered his first payroll and even the cost of employee benefits. The help enabled Mitchell to keep start-up costs down to $150,000 instead of a projected $1.5 million and he later sold his company for $16 million.

It sounds like a one in a million shot, but it works. Smart customers may see a great investment opportunity in your small business or startup. They put in a bit of money, perhaps they get some equity, or access to your products/services more readily and easily – there’s any number of ways the relationship could develop. But the result is that your startup gets some much needed capital (and hopefully mentoring/support to boot) and your first client gets what they need as well. It’s a win-win.

Part of being a successful entrepreneur is always looking for opportunities. More than that, it’s recognizing opportunities that others don’t see or realize exist. Show them the benefits, put the opportunity on a silver platter and you’re off to the races.