Most of the successful businesses that are thriving today are known to have started small. This tells us that you don’t really need thousands and thousands of dollars to set up your company. You can start small and fund your own company without any external capital.
In simple terms, this is the concept of bootstrapping. Top businesses right from Facebook and Apple to Oracle and Microsoft are great examples of companies that have bootstrapped their way to success.
Bootstrapping has a lot of benefits. For starters, you work hard to give it your all since you have put in your own money. Moreover, you don’t also need to convince investors on why they should invest in your business. You are basically in full control of everything.
If you too are looking to make it big in the industry and are considering bootstrapping, here are some great ways you can do it.
10 Tips to Bootstrap a Business
Without much ado, lets get into the meat of the discussion.
1. Select a business domain that you are already familiar with
You might have a million-dollar out of the box idea for a business. But it is a recipe for disaster if you have no experience in that domain. Hence, it’s best to stick to a field that you are already familiar with. Having good knowledge and connections are your secret here to building your way up to success.
2. Find people who believe in you business
Managing employees is often expensive at the beginning. But, you still need people to make everything work together. Look for people who believe in your work and offer them something of value in return. Offering them equity can be a good idea.
3. A proper financial plan is your key
Make a proper plan of how much money you have and how you plan to spend it. Keep track of each and every penny that you own. Don’t be reckless and make wise decisions while spending. Spending and investing money smartly is your key here. Plan this step with a lot of thought.
4. Work from the comfort of your home
Yes, you will have an office of your own in the future. Office spaces often cost a lot and aren’t worth investing in on an initial stage. So, until you actually start making good business from your startup, it is best to work from home. You can work with your other team members remotely.
5. Look for ways of delaying vendor and other payments
Ask for more time from your vendors to pay them back. Use your connections, if you can. You can make them understand your money issues as a startup. Another good idea is to barter. Offer them something for the time being.
6. Look for things that you can do on your own
You don’t need to hire people for every little thing. Look for things that you can manage yourself. Make a list of things that need to be done and tick off all the things that you can do yourself. You may be surprised by how many things you can manage on your own!
7. Save money wherever you can
Look for ways where you can effectively save your money. You don’t always have to buy brand new things. Buying second hand products can help you save a lot of money. Similarly, look for other ways you can save money. If you can get your hands on something for free, don’t hesitate.
8. Invest well in a good domain
Investing well in worthy things is just as important as saving wherever you can. Your company needs to have a clean record, especially if you want investors in future. Invest in registering your business.This is very important.
9. Stick to your core ethics
Don’t ever compromise on the core values that your business was built on just to earn a few extra bucks. It is best to stick to doing things your way and not make any major changes to it. Go for major changes only if the incline with you plans for future growth.
10. Stay resolute
Maintain good relations with everyone you’ll need to work with, even in the future. At the beginning, vendors/ suppliers may not be interested in your business as your needs may be small. But, you need to stay resolute and make things work for you.
Over to You…
Bootstrapping isn’t always an easy thing to do. You need to work hard, put in consistent efforts and make smart decisions. All the best!