Friday, January 11, 2008
Capital concerns: Entrepreneur weathers the storm
The Business Journal of Phoenix
Sharon Lechter, co-author of the best-selling book “Rich Dad, Poor Dad,” and her husband, intellectual property lawyer Michael Lechter, shredded their son’s initial business plan.
“They challenged everything to the point where we got out of the clouds and down to reality,” Phillip Lechter recalled.
In June 2007, Phillip Lechter and Troy Schuricht co-founded Community First Financial with about $70,000 in startup costs. The pair also secured $100,000 in private monies and $100,000 in personal lines of credit for their Scottsdale mortgage services company.
The pair wrangled over expenses — whether to buy nice furniture or go to Staples for mainstream decor, for example — and over the mental shift of thinking like a business owner rather than an employee, particularly when it came to payroll.
Lechter and Schuricht opted to spend the extra $1,200 for upscale furniture, mainly to impress clients. They concluded that if the extra cash ended up breaking the company, “we should probably not be in business.”
Community First weathered that storm and now is battling through the mortgage crisis in its first year of operation.
For more: www.communityfirstfinancial.com.
Check out the article at : http://phoenix.bizjournals.com/phoenix/stories/2008/01/14/smallb4.html?jst=pn_pn_lk