How I Bootstrapped My Businesses And How You Can Too

Starting a Business With Zero Funding by Bootstrapping From Friends and Family

Welcome to this week’s issue of RAISINI.
Every week, i write about building a life on your own terms - through music, entrepreneurship, investing, health and brand-building. This isn’t theory. It’s what I’ve lived. Let’s keep going.

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You've likely heard the phrase "pull yourself up by the bootstraps," a modern expression implying self-sufficiency. In the startup world, this translates to bootstrapping - a method of funding your business without external investment.

If you're considering launching your first business, you've probably wondered about funding. The tech world often glorifies venture capital, but there's another path: bootstrapping.

Whether you're a seasoned founder or a novice entrepreneur, understanding bootstrapping can open doors to new possibilities in your startup journey.

Many of the successful companies that we see today had their humble beginnings as bootstrapped enterprises. Some of them are Apple, Meta, Coca Cola, HP, Oracle, Microsoft, eBay but my favorite and one of the most successful stories I can think of is that of J.K. Rowling, the author of Harry Potter, and how she bootstrapped her business with a mere £4000 she borrowed from a friend to continue her education while living on welfare. The rest is history as she built a $25 Billion business with Harry Potter franchise.

The media often showcases stories of venture capital firms pouring millions into new ventures. However, the truth is far from the headlines. According to recent findings by the Small Business Administration, a mere 1% of startups secure seed funding from venture capitalists or angel investors.

But what about the remaining 99% of businesses? How do they secure the funding needed to kickstart, expand, or sustain their ventures?

Understanding Bootstrapping

What is Bootstrapping - (boot·stra·pin) ?

When an entrepreneur starts a company with little capital of his own.

Bootstrapping involves financing your venture using personal funds, credit cards, contributions from friends and family or if you have a small side hustle then the revenue generated from your business. Unlike seeking traditional venture capital investment, bootstrapping allows you to maintain ownership and control of your company without giving up significant equity.

The beauty of bootstrapping lies in its self-sufficiency. By relying on your own resources and ingenuity, you can build a business from the ground up, without external investors dictating your company's direction. This method fosters a sense of independence and encourages founders to focus on sustainable growth, rather than chasing rapid expansion at any cost.

My Bootstrapping Journey: The Story of RAISINI

RAISINI events at ARMANI/Prive Dubai

Over the last two decades, I have ventured into the music, entertainment, fashion, tech, art, sports, and retail industries and all my businesses were bootstrapped. I do not have any investors and i own 100% of all my businesses.

In the late 90s, i bootstrapped my first business. I founded the brand RAISINI, started as an entertainment agency, because I was underage and couldn't enter clubs that required a minimum age of 21 in Dubai, being a few years short of the requirement.

While exploiting the loophole of hosting my own events to gain entry into nightclubs, I also aspired to learn the music trade. By accident, I was offered my first real job at Universal Music Inc (Middle East) as a Label Manager.

During my tenure at Universal Music, I immersed myself in the intricacies of the music industry, garnering invaluable insights that would later shape my entrepreneurial journey. Seizing upon my passion, I ventured into uncharted territory, transforming my knowledge into action by establishing my business, Raisini.

With little familiarity with the events or clubbing sphere, I saw an opportunity to gain access to clubs by offering my services. In 1999, I approached one of Dubai's premier clubs, ATLANTIS (not to be confused with the Atlantis Hotel on Palm Island), located at the esteemed Hard Rock Cafe, proposing a collaboration. Leveraging my affiliation with Universal Music, I pitched the idea of orchestrating album launch events, pledging to draw in sizable crowds. Clubs are naturally attracted to partnerships who promise increased footfall, translating to higher ticket sales, beverage consumption, and overall revenue. Thus, inadvertently, I found myself thrust into the realm of event organization and promotion.

The resounding success of our inaugural event propelled me further into this newfound role. Buoyed by the positive reception, the club owner extended invitations for future collaborations, marking the genesis of my journey as an events promoter.

Several months later, as my birthday approached, I found myself back at the club, chatting with the Operations Manager over drinks. In a spontaneous moment, he proposed the idea of hosting my birthday celebration at the venue. His offer included complimentary drinks and canapés for me and my guests. Without hesitation, I eagerly accepted, responding with a resounding "Hell Yeah, lets do it."

The club even went the extra mile by arranging a bus to transport my entourage of friends and colleagues, totaling about 70 individuals. With style and excitement, we embarked on a night of celebration, reveling in the festivities until the early hours of the morning.

The following day, my mind buzzed with possibilities. If clubs were willing to extend such enticing offers just to draw a crowd, what other opportunities lay untapped?

That's when the idea for Raisini Entertainment took root. I dedicated weeks to conducting thorough research, learning everything about the events industry and identifying key venues in Dubai, along with potential competitors. To my astonishment, there were few clubbing venues and scarcely any serious promoters or event organizers at that time. Recognizing a significant gap in the market, I seized the opportunity with unwavering determination.

Having endured a harrowing ordeal in Ukraine that led to the loss of most of my fortune, I was determined to rebuild my wealth. Recognizing the events industry as a promising opportunity, I set my sights on earning it all back.

I started hustling and approached another club, 'Oxygen,' situated at the Al Bustan Rotana Hotel in Dubai (now the Mövenpick), and proposed hosting my birthday party there, guaranteeing a turnout of at least 300 guests. Intrigued by the opportunity to boost their venue's popularity, they were keen to collaborate. In our contract, I negotiated for 20% of the revenue generated that night from ticket sales and food/beverage sales, along with complimentary food and drinks for me and my friends. Additionally, I requested two hotel rooms for accommodations after the party, to which they agreed.

I printed 500 business-sized cards and distributed them to my friends, at University and all my customers through Universal Music. The response was overwhelming. The event was sold out, with a long queue forming outside, and I managed to earn $17,000 that night while celebrating my birthday and staying at a luxury resort. It was beyond my expectations and provided me with extra funds to invest in my new business.

That marked the beginning of Raisini Entertainment, and from there, we went on to organize hundreds of events and festivals, starting with successful small club events.

The initiatives didn't stop there. Raisini organized weekly clubbing events and music festivals in Dubai, Abu Dhabi, Doha, Muscat, Manama, Casablanca, Sharm el-Sheikh and as far as Europe, Asia and America and continued to raise funds and grow the business in other projects such as Raisini Records.

Advantages and Disadvantages of Bootstrapping