Brandon Vallorani is the CEO of Vallorani Estates and the author of The Wolves and the Mandolin with ForbesBooks. In a recent article with Forbes, the successful entrepreneur explained how he grew his company without outside investing aid. According to Vallorani, in the years preceding his first venture, he had a high credit score along with a portfolio of credit cards with high credit limits equaling approximately $200,000. Vallorani then purchased inventory and advertising and paid off his cards with the sales brought in each month without paying any interest. With this, he was able to avoid high interest loans, paying back family, and dealing with the issues that come along with outside investing.
Vallorani then gives other examples of successful companies without outside funding. According to Vallorani, “The man who started Tito’s Vodka funded his startup using a wallet full of personal credit cards because he believed in his product so firmly. So did the founder of CheapOAir. And the big one: Google. In 1996 two PhD students worked on their research paper out of their dorm rooms at Stanford University. Two years later, they spread the costs of starting their search engine company over three personal credit cards.”
Although using credit cards to fund your business is a good idea, it is also very risky. If it does not go well you’ll have alot of debt to deal with and a fail business to boot. Regardless, as Vallorani puts it, if you’re invested in your business and truly believe it will work, like other corporations, it is a great opportunity at funding. Remember to be smart and do your research before pulling the trigger however.