Many businesses find it difficult to get funding either form VC or angels investor.. Some other entrepreneurs prefer to invest the profits back or (personal savings) into to business to grow big than tapping into VC or other investor money .. They do so as to not to dilute or share equity(control to investors)
What is bootstrapping
Bootstrapping means business launched by entrepreneurs with no outside cash
More and more businesses are Bootstrapping in today’s age.. The greatest advantage is maintaining control.Also you are answerable to no one(meaning investors or owners) .. All the decision can be taken by founder(s)
So is it possible to bootstrap successfully.. The answer is yes..
Let’s explore ways to bootstrap your startup
Finding right co founder
Always try to find a co funder or partner who has complimentary skills sets.. If you are good at sales find someone who is good at technical aspect or likewise.. This way you can keep the cost low because you don’t have to pay to employees..
Also when it comes to finding right Co founder trust is the big part of relationships..
Find advisor or mentors
Finding advisor and mentors goes long way in success of the company.. They may be your peers, family members or anybody who has more experience in running and growing a business.. Some advisor and mentors may take equity stake for exchange of their help or advise.. Do negotiate well in such cases and not to dilute much equity..
Find good revenue making model
Every business needs to develop a revenue model even before a product.
Revenue can be generated from various sources like markup, commission etc
In order to bootstrap your business needs to be making quick buck.. This is required to pay bills and invest back into business to scale or expand and continue to serving growing audience
Do most of the job yourself
Initially founders must do multiple jobs themselves.. This will save cost.. But as you grow its important to start delegating work to others.. Try to outsource sparingly.. There are various platforms(upwork, freelancer, people per hour, fiverr etc) to hire remote workers who are very cost effective spread over the different parts of world than hiring full-time workers
Make a financial budget and get to know fixed expenses like rent, electricity bills etc Try to live frugally.. Stop living in big houses or stop working in fancy office space, stop driving expensive cars.. Invest in things which takes your business far (meaning progress)
Try to pay yourself less initially.. Most successful entrepreneurs of today paid very less salary to themselves initially..
Create a good and cost effective marketing strategy
Creating engaging and compelling post for your target audience.. This brings many customers in and retain them.. Create interactive content like polls, quiz etc giving target audience sense of interaction.. Try to tap into free social media. Make use of Video marketing as it is the future.. Hire or outsource to freelancer workers through various platforms which keeps the cost low..