Bootstrapping is all about self-funding. You need to maximize human capital and use all your self generated funding before you can start looking for investors. A successful bootstrapped startup company that has proven to be stable for at least one year is very attractive to investors.
It will show that you not only know how to spend money but to bring in more. With cloud-based tools, and open source software, bootstrapping a company has never been easier.
Here are a few tips for saving bootstrapping startup business costs in your first year.
1. Maximize Human Capital
You need to get the most you can from yourself. This is what human capital is all about. As the founder of the company, you need to use your skills and hustle for your business at least until you meet the initial milestones.
Go above and beyond to understand the needs of your audience, sell from door to door, and work overtime to save money for development. You don’t have to know how to do everything, but you need to maximize resources to cut on costs.
2. Use Self-Generated or Existing Funds
Existing funds refer to your savings. However, if you are wise enough, you could use self-generated funds and not need your savings. You may possibly have an existing income source and you need to start putting some money aside from that.
You can make a lot more by selling your service, while you still build your startup. This is whatever you are good at that is aligned with your startup. Project management, bookkeeping, mobile development, data entry, content writing, tutoring, and online marketing are a few of the services you can sell.
3. Prove the Idea is Worth Investing in First
Most entrepreneurs think that without money to rent an office, hire a management team or even a development team, they cannot start on the idea. Forget all that. The best bootstrapping startup ideas involve addressing the needs of your potential customers and solving their problems.
It is of utmost importance that you learn as much as you can about those potential customers. You need to know whether these customers will be willing to spend money on your products or services.
Once the development stage is over and you find some investors, you can easily find affordable offices for startups and more employees.
4. Pre-Sell Your Product or Service
Interview some of your customers to understand and identify their problems. This will help you build relationships with them and they’ll feel more confident when coming to you for the solution.
You can use your own website to pre-sell or go with crowd-funding.
5. Hire Only When Necessary
Hiring is an important part of your business because you need the right fit. If you hire the most experienced people in the field, it will cost you a lot and they may not be used to bootstrapping. Hire people who are most hungry for success, especially with the limited budget.
One of the best business cost saving idea is hiring people with the right skill sets to get the company off the ground.
Tips for Bootstrapping Startup Costs
Bootstrapping doesn’t have to be complicated and these are the business cost saving ideas you need to implement. Bootstrapped startup companies usually have a higher chance of success and as long as you build a core product, investors will be looking for you.
For more bootstrapping startup ideas on any budget, feel free to check out our website or contact us for more information.
