all startups have the luxury of getting investors from the very
beginning. So, you have to fund your business out of your own pocket.
This is what is called bootstrapping.
this is a good way to start a business, bootstrapping is more difficult
than it might seem especially for first-time entrepreneurs.
bootstrapping tricks to make funding your own business easier.
bootstrapping, the majority of the work is done internally, so
co-founders need to complement each other’s skill sets. If you’re good
at different things, you have a better shot at being able to do
everything between the two of you thus keeping expenses low.
most successful bootstrapped companies have a business model that
generates cash as quickly as possible. Without any cash inflow, you will
exhaust your cash pool before gaining any serious traction.
a salary, you won’t have money to spend – so don’t expect to live a
luxury life when first starting your company. Consider every purchase
and only spend what’s necessary.
bootstrapping, hiring someone for a job you could do yourself is a
foolhardy expense. So, whether you are very busy or not, you should
never outsource jobs you can do yourself.
does not mean you should not watch out for prospective investors. So,
keep an eye out for people who may be willing and able to invest in your
business. Build relationships with them, but don’t ask for money until
the time is right.
entrepreneurs wait until their product is ready before they start
marketing. This is not advisable especially if you are offering a
product that people are interested in. Therefore, find good, cheap,
effective ways to reach your potential customer in the early stages of
your business. And whatever profits you do make, put as much back into
marketing as you can.
spend money on anything that doesn’t have the ability to put money
directly back into your business. View the expense of these items as an
investment, but be sure the investment has the ability to provide you
with a positive Return On Investment.