Are you attempting to start and build a business from your personal finances? This situation is known as bootstrapping, and it involves starting a company with very little capital. While it is certainly a possibility, bootstrapping can be an extremely challenging situation. Fortunately, by following some helpful tips, you can help your business to grow.
1) Show that You're Passionate
No amount of money will make up for a lack of passion when it comes to your new business venture. If you truly support and believe in your business idea, be sure to dive right in and don't let anything stop you from succeeding. Drive and passion will be necessary to remind you to stay on course and that all of your sacrifices will ultimately be worth it.
2) Get Creative with Marketing
You don't have to put out a major TV commercial to get attention for your business. You can always use various free or/and paid social media platforms to build your business visibility and connections. Creating profiles on various social media platforms such as Linkedin, Twitter, Facebook etc and regularly updating these business profiles in accordance to your new products and new offers launch is a must. Add comments and queries section to your websites along with share buttons to your blog. The major aspect is to stay connected with your followers and respond to any queries they put up against the business.
3) Start Off Handling Your Own PR
While your new startup will greatly benefit from media exposure, especially during the early days, choosing a public relations firm to handle these activities for you can be an unneeded expense. Editors and journalists want to speak to you - the founder - and will be less interested in discussing the motivation for your business with a PR firm. Don't waste your limited resources, and instead, work at getting media coverage on your own.
4) Ditch the Traditional Office Setting
In order to successfully bootstrap a business, it is important to cut any unnecessary costs. For some people, that may include eliminating a traditional office when you don't really need one. If you don't have employees, you really won't need an office and can run the business out of your home. This will help to keep your limited financial resources in check.
5) Keep Track of Every Cent
You should be sure to keep track of every expenditure and dollar spent with your business, as money can leave quickly when starting a new business venture. Use QuickBooks and other accounting software to keep track of your spending and to monitor your cash.
6) Adapt to the Latest Technologies
When it comes to bootstrapping a new business, you don't want to be left behind by the competition due to outdated technology. Make sure that you invest in the latest technologies that can help you to do business more efficiently. Cloud based phone systems integrated with Microsoft Office 365 is a good example, as these systems will allow you to take your business with you when you are traveling and on the go.
7) Reinvest Your Profits
When funds are tight, it can be tempting to take money out of your business to use for everyday living, but this is a big no-no when it comes to bootstrapping. It is important to keep your profits invested into your business, and entrepreneurs who have had success with bootstrapping recommend leaving profits in a business for at least 12 months. This will allow you to have capital available when you need to make a strategic investment.
8) Do Your Own Legwork
When you are first starting your business, it is important that you do as much of the legwork as you can. Certainly, if a task requires technical knowledge that you do not possess, you should outsource the job. However, it is just time consuming, but you are fully capable of doing it yourself, go for it. Don't take on any unnecessary expenses.
9) Consider Your Salary Source
Bootstrapping a business will typically mean that you aren't taking a salary from your new venture for some time, so you should consider how you will support yourself. Will you be working a day job? Can you rely on savings or a spouse's employment? Make sure that you have a plan in place for an extended period of time.
10) Prioritize
Remember that you have limited money and time, so you'll need to be strict with your prioritization. Lower priority items may need to be dropped off of your radar in the beginning of your business venture. Focus on today, and think of your top goals. Make these your priorities for both your time and cash investments.
Bootstrapping a new business can be extremely difficult, but it certainly isn't impossible. By having a passion for your idea and putting in a considerable amount of hard work, you can set yourself up for a good future in your new business venture. Ultimately, you need to keep in mind that bootstrapping is an investment in yourself, and by following the right steps, your efforts will pay off in the long-run.
All images via Shutterstock