When Gina Teo and Renee Tan wanted to start their own business, they did not look for investors or apply for a bank loan. Instead, they dug into their pockets and coughed up S$25,000 each to set up Bohemian Butterfly – a retail business selling novelty bags.

As they had both been working for some time and had been consistent savers, adopting this approach of funding was a natural choice. “The advantage of using our savings is that we own the business and have full control. We have no sleeping partners or investors who might interfere,” says Gina.

Being Creative In Meeting Financial Challenges

Operating on savings alone, Bohemian Butterfly managed to grow from a web store and two pushcarts to a permanent retail store. Profits generated from the business were used to finance the expansion.

Self-funded businesses, however, have their limitations.

“Sometimes our ideas for expansion have to take a backseat due to a lack of funds,” admits Gina. Any decision to expand has to be scrutinised to ensure it can be funded properly.

A limited budget means that creativity is the key when it comes to marketing and promoting their products, and building their brand. Some of the novel ways in which they generate publicity is through tie-ups with magazines and credit cards.

Scrimping and saving to improve cash flow is inevitable when running a self-funded business. “When business is poor, we have to tighten our belts further and not draw a salary,” reveals Gina.

Running The Business - Hands-on

The financial restrictions have not discouraged Gina. Besides having complete control over the way the business is run, she derives satisfaction from managing her business hands-on.

The company only hires part-time staff as the two partners prefer to run the business directly. This not only allows them to get to know their customers, but it also enables them to reduce costs.

“I know many of my customers by name and they give me ideas on the designs they would like to see sold in my store,” Gina says.

The two years that Gina has been in business have been rewarding. “I’m still learning,” she says modestly, “but in business I can do what I truly enjoy. There’s no substitute for that!”