Money makes money. It is a well-known statement. Anyone who can start his or her business with a substantial starting capital has an advantage and a greater chance of success. There is certainly some truth in this. A good business idea can develop faster if the company already has direct capital to invest with. Yet daily practice often shows a different pattern. Many very successful companies have started with small start-up capital. And Sara Blakely proves that you can build a billion-dollar business even with a small budget. Her company SPANX, which sells shaping panties and other underwear, started with $5.000 in invested savings. Blakely is now one of the youngest female billionaires. How did she do that?

Start-up capital, a blessing or a curse?

Starting a business without significant start-up capital, is that possible? Of course, but it is difficult. We often hear the old saying 'money makes money' in the entrepreneurial landscape. And there is some truth in that. Those who can invest heavily when starting their business can grow faster. And yet the opposite often turns out to be true. Many successful entrepreneurs were in ruins when they started their rise, or had even gone bankrupt at some point. A provoked and warned person counts for 2. Although a large starting capital is useful, it can certainly also have a paralyzing effect on your company. In fact, start-up capital can even unconsciously be a disadvantage. The real need to take care of your sandwich may not be there, which makes you a little less sharp. So start-up capital can be a curse as well as a blessing.

Practical lessons that do not come from the book

'It's important to be willing to make mistakes. The worst thing that can happen is you become memorable' – Sara Blakely

A perfect example of a 'self-made billionaire' is top entrepreneur Sara Blakely. This lady is the inventor and owner of SPANX, which launched a revolutionary new type of pantyhose. She started her business with $5.000 in savings and built it into a billion-dollar business. She regularly shares how she did this, which is very inspiring. Her style is characterized by learnings from practice that are often at odds with the lessons we can read in entrepreneurial literature. We have listed a number of lessons from Sara for you.

Don't share your idea too quickly

In recent years, partly due to the rise of the internet, less and less value has been attached to saving your idea. In fact, many business ideas are already on the street through crowdfunding before they have seen the light of day. Sara Blakely sees this differently. She advises keeping your idea to yourself for a while, no matter how difficult that is. When you think you have a good idea, your most natural reaction is to share it with your loved ones. She only discussed her idea with friends after she had developed it 100%. There is certainly something to be said for this approach. Not so much from the perspective that your idea could otherwise be 'stolen', but more to protect yourself. If you share your idea with those around you when it has not yet been fully developed, those around you may react moderately or even negatively. This is demotivating. So you can choose not to share your concept until you are completely sure that it is as it should be.

Not everything has to go in the 'correct' order

The correct order, is it even there? On paper, perhaps. Theory tells us that we must go to war deliberately. Do not enter the market before logistics and organization have been secured. However, Sara took the plunge and closed a deal with a retail chain before she had an answer to the exact mass production of her product. You won't get there without taking risks, she must have thought. Have you ever taken an entrepreneurial risk?

Hire nice and reliable people

That sounds like a no-brainer, right? But it's not so obvious. Blakely hired a friend as PR director who had supported her from the start. Many entrepreneurs do not choose to hire people from their immediate environment because this is a major risk. Sara gives the advice to hire reliable people who you know and are friends with or get along well with. You don't see this phenomenon often in the Netherlands. It is common, especially in the marketing world, for companies to build their workforce mainly through their own network and through relationships with their existing staff. This increases the chance of a family corporate culture, which can be very important in the marketing industry.

Do you follow the beaten track, or do you, like Sara Blakely, mold theory into your own recipe? Almost without exception, top entrepreneurs have their own strong vision and opinion. Theory is of course very important. But isn't the theory mainly there to be adapted to your own situation and applied in practice?