Bootstrapping Your Business: How To Do It Right

how to bootstrapping your business

It is unfortunately true that 90% of startups fail. Most new businesses don't even make it through the first year for a variety of reasons, and even if they do a lot of them aren't profitable.

If you're looking to start a company, the odds may not be in your favor. Bootstrapping your business means taking an even bigger risk. But what if you could bootstrap your business, and form part of the 10% of startups that are enormously successful? 

Keep reading for the most important advice for bootstrapping a business. 

Bootstrapping 101: The Basics 

Put simply, bootstrapping refers to starting your business with no external funding. This means relying on personal savings and the money generated through your first sales. No outside investors or venture capital. 

Bootstrapping is appealing as it gives entrepreneurs more control over their company. However, bootstrapping also puts the owner under more financial strain as there is more risk involved. Here are a few things to consider if you're considering bootstrapping your business. 

Attitude Is Everything When You Bootstrap Your Business

Bootstrapping is not easy. You'll have to cope with difficult decisions, financial setbacks, lack of resources, and personal strain. 

For this reason, it’s important that you’re fully prepared for a long and most likely stressful journey in building your business. You also have to be willing to take full responsibility for how your business progresses if things don’t quite go as planned. 

You Can Never Plan Enough 

You probably already know that extensive research is the first step when bootstrapping a business. That’s why you’re reading this article after all, right here on the Bootstrap Business Blog! 

Although there's a whole lot of information online, there’s nothing like learning from personal experience and mentorship. 

Seek out and speak to business-savvy contacts for advice and incorporate these nuggets of wisdom into your bootstrapped planning. 

Also, create a backup or emergency plan for any setbacks and failures. They’re bound to happen but shouldn’t set you back too far if you’ve prepared adequately. 

Build Your Skillset 

When starting out, your product is everything. This means as a business owner you should know your product inside out and be able to build it, fix it, deconstruct it – whatever! This will save you money in the long-run as you won’t have to rely on anyone else. 

Also consider upskilling when it comes to general entrepreneurial skills. There are tons of free online courses covering everything from marketing to finances. The more you can depend on your own skills, the better it will be for your bootstrapped business. 

Know When You Need Help 

Although it's tempting to Swiss army knife your way through your startup, you can't do everything. Start small and select a handful of employees who you trust completely to handle the aspects of your business that you don't feel confident handling yourself. 

The pandemic has necessitated that businesses invest in their online setup. So it's recommended that you outsource your IT situation to a trusted company offering managed IT services so that you can make sure your tech is always operating smoothly. 

IT is central to your operations, and investing in IT services at the beginning will save you money in the long run. This is the wisest choice for a bootstrapped business on a budget.

Bootstrapping: Is It The Right Choice For Me? 

If you've got an entrepreneurial spirit and an excellent idea, bootstrapping might be the right choice for your startup. All it takes is some personal capital, excellent planning, and a willingness to embrace challenges. But bootstrapping is only the beginning! Keep browsing for all the business intel, tips, and tricks you need to know as you bootstrap your startup company.

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