It’s not easy, but it is wise… Bootstrapping your startup encourages following the plan and keeping operations running off the resources you have or the business has generated with sales.
By using this method, you take away a lot of risk. You do not have investors to answer to.
Bootstrapping gives you the freedom to manage your startup the way you know will work.
But I will tell you that many startup bootstrapping efforts fail. This can happen for any number of reasons, but normally it just comes down to mismanaging the resources they had.
In today’s post, I am going to give you 8 pieces of advice on bootstrapping your startup. And, be sure you read all the way to the end where I will share with you a tool that can help you with bootstrapping.
Bootstrapping Your Startup #1: Choose Partners Wisely
In many circumstances, startups come together with 2 or more partners or co-founders. You want to make sure that partners compliment each other. After all, bootstrapping means wearing many hats. You want your partners to have strength in your weak areas and vice versa.
Bootstrapping Your Startup #2: Test The Markets
Before even going forward with a product, you should get out and talk with potential customers. See if your idea will be accepted. If you receive a positive response, move forward.
But there will be more testing too. You need to move as efficiently as possible, so it is wise to run small and low cost marketing tests to find the best results.
Remember, always test beforehand.
Bootstrapping Your Startup #3: Just Say No To Using The Card
Earlier in this article, I mentioned that startup failures come down to mismanaging resources. Just my prediction, but I would gamble to say that 70% of those failures had credit card debt.
Credit card debt can ruin a business quickly. Credit cards are only safe if you pay them off within 30 days, and even then, you may face some costs.
Bootstrapping Your Startup #4: Know Your Competition
There is an old line that says Keep Your Friends Close, But Keep Your Enemies Closer. I won’t state that your competitor should be considered an enemy, but in this context, you want to switch enemies with competitors.
You want to know your competitor inside and out. You want to market on the value your product provides that their product doesn’t.
Also, you should monitor and learn from the competitor’s marketing efforts.
Don’t copy them… Do it better!
Bootstrapping Your Startup #5: Learn
As I said earlier, bootstrapping requires you to wear multiple hats. You want to keep costs down, so you want to be able to do as much of the work in-house.
There are many areas you should consider studying. Read books, watch videos and even take courses in such things as:
- Business accounting
- and more…
You can never learn too much!
Bootstrapping Your Startup #6: Embrace Social Media
If you use social media correctly, you can start a buzz without any cost. Start a business page and share your ideas.
Show people inside your operation; tell your story.
Social media… Facebook, Twitter, Linkedin, Instagram… All these and more can be a great way to market for free.
Bootstrapping Your Startup #7: Network
By connecting with like-minded entrepreneurs, you can share information, new technology and even customers.
It always pays to have more than 1 head when brainstorming about your startup.
Bootstrapping Your Startup #8: Be Diligent About Cash And Budget Management
You want to watch your cash flow, your budget like a hawk!
Keeping track of every penny coming in and going out is a must. Many expenses could count as tax deductions.
I mentioned at the start of this post that I would share a tool that has helped many people keep control of both their personal and their business budgets.
As a startup, I know you can benefit from The Expense Tracker. Just see how this too can help you and get a free 7 day trial by clicking here.
Hey, I am glad you stopped in today.
Be sure and share this with others who may be considering bootstrapping.
Let’s help each other get…