The Start Poor, Grow Rich Model
Bootstrap ruthlessly at the start, invest aggressively once you have traction
The Start Poor, Grow Rich Model is a two-phase business growth philosophy. In Phase One (Start Poor), you act as if every penny is your last. You justify every expense, use free tools, avoid outside investment, and let resource constraints sharpen your creativity and discipline. In Phase Two (Grow Rich), once you have a proven business model and revenue, you flip the equation and invest aggressively in people, equipment, quality, and community.
Squibb argues that not having money is actually an advantage in the early stages because it forces discipline, eliminates complacency, and ensures every action contributes to the bottom line. He contrasts this with his own most expensive failure, a joint venture funded by a wealthy partner where limitless capital led to complacency, a fancy office for three people, and a seven-figure loss.
The framework also includes a comprehensive taxonomy of business models (direct sales, sponsorship, advertising, licensing, subscription) to help entrepreneurs identify how their dream can generate revenue.
- Not having money sharpens your mind and guarantees discipline, while deep pockets breed complacency
- Start with a cheap bit of kit and improve only after you have traction and revenue
- Every business needs a clear business model before it can grow: know what you sell, to whom, and through what channel
- Your brand is effectively you: sell yourself as well as your product
- Multiple revenue streams make your dream more resilient
- Define Your Business ModelBefore spending anything, answer four questions: What are you selling (product, service, and your personal brand)? Who is the customer (be as specific as possible: imagine the exact person walking into your store)? Where will sales happen (direct to consumer, through retailers, online)? What is the revenue model (direct sales, sponsorship, advertising, licensing, subscription, or a combination)?Pro tipStart in one niche and build a brand that appeals to a defined audience. Do not try to appeal to everyone. Gymshark started with male weightlifters and expanded from there.WarningYou would be amazed how many businesses do not think enough about who their customers are. If you cannot describe your typical customer in detail, you are not ready to sell.
- Start Poor (Bootstrap Phase)Launch using the laptop you already own, free online tools, and the cheapest possible approaches. Build your website for near-zero cost. Use freelancer marketplaces for branding. Market through social media for free. Do not lease offices, hire staff, or buy equipment until revenue demands it. Justify every penny and spend only what you must.Pro tipSquibb started his podcast with a 130-dollar microphone his wife gave him for Christmas. He deliberately kept it cheap because he did not want to waste money on something he was still testing. That crappy podcast became the foundation for everything he does today.WarningActing like a big company when building a small one is the most common mistake. Do not send your designs to China before you have sold a single item from your kitchen table.
- Grow Rich (Investment Phase)Once you have a proven business model and consistent revenue, flip your approach. Invest in great people and pay them well with equity. Choose a beautiful workspace. Upgrade your equipment and digital presence. Build and nurture a community around your brand. The equation reverses: at this stage, acting cheap will drive people away rather than attracting them.Pro tipEvery time you hire someone good, life gets a little easier. When the business has traction, your biggest risk is not overspending but losing great people because you underinvested in them.WarningDo not confuse bootstrapping discipline with permanent cheapness. Once you are established, failing to invest in people and quality will stunt your growth.
Squibb started his podcast in 2019 with a cheap microphone his wife gave him as a Christmas present. He deliberately started cheap, cringing at the audio quality of early episodes but loving the process of interviewing entrepreneurs.
Ben Francis started Gymshark at nineteen as a Pizza Hut delivery driver. He bought a sewing machine and screen printer and made clothes in his parents' garage, learning to sew from his grandmother.
Squibb bootstrapped every business he ran except one: a joint venture in Hong Kong backed by a wealthy private equity partner. They leased an extravagant office with a gym and cinema room for twenty-five people when only three were on the team. They even hired a feng shui master. The venture produced only one project (the comic book DevaShard), which failed, leading to a legal dispute and a seven-figure loss. This experience permanently inoculated Squibb against the rich person's mindset of spending money you have not earned.