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Burn rate is the speed at which a startup business consumes money.My rate was $75,000 a month.Four months after my company was set up, I had only a quarter of the starting capital left in the bank.
Looking for guidance, I went to talk to my friend, Arthur Walworth about my new venture.“Times of great change always bring out the risk-takers,” he said.“And they leave winners and losers.My grandfather invested a lot of money in a project of Thomas Edison' s that ended up in failure.”
I was lost in thought at the notion(an idea or belief about something)of a Thomas Edison project ending in failure.Damn.It could happen to anybody!I must continue.
At that time CD-ROM sales had bombed, so investors were fleeing from the field.I didn't turn away from mine entirely, but instead linked it to the internet.
My plan was to offer consumers descriptions of home-design products by using a special software and let them modify the designs.Then we can enable them to get online professional and constructional help to have their houses built, decorated and furnished according to their own choice.
To realize my plan I needed investors, so I continued to meet regularly with venture capitalists.One said I had a great idea.But I needed to test it.Get the money somewhere.To get this money from a venture capitalist is going to cost my wife and my children!He turned down my request.
Wife?Children?I hardly remembered them.
I was working nonstop-struggling to turn the key in the lock, to find the right way ahead.The pressure was terrible.It was just at this time that my parents and sisters stepped up.Two hundred thousand dollars.A lot of money to them, invested in this crazy son and brother without a moment's hesitation.Dad and Mom had driven out from Chicago and seen the passion in my little office and the trouble at home.
With their help my company survived and has been prospering ever since.