Investing In Capital Last

I worked for a Fortune 500 beverage company.
We were coming out with a new product.
In my plans, I planned for capital investments.

But not in the first year.

In the first year,
we planned to have a co-packer
make the product.
This co-packer would supply the equipment.
This meant leaner margins, less profit.

So why this strategy?
Because we weren’t assured of success.
And until we knew that it was,
we weren’t investing long term.

If a Fortune 500 company bootstraps new products,
so should the untried entrepreneur.