You don't need a huge amount of capital to start a successful business. Many successful companies were initially bootstrapped, including GoPro and Facebook. However, you don't have to aspire to become a tech giant to be a successful bootstrapper.
Businesses can thrive from a bootstrap beginning, and the 4 tips below can help you achieve that success.
1. Go With What You Know
Because you are unlikely to be able to hire people when you are starting out, it is best to choose something you are already familiar with at least to some degree when you are going the bootstrap route. This will also mean that you already have a built-in network, making getting things off the ground much easier and faster. There will always be new business trends to look into, but you have to make sure they also make good sense for you personally. At the same time, don't choose a particular sector just because you want to start a business and you are familiar with it.
You still need to do the right research, making sure that there is a market for the product or service that you are offering and that you have correctly identified your customer base.
2. Be Smart About Money
Some business owners can coast for a while without much income. This might be the case if you are keeping your regular job or you are supported by someone else while you get up and running, but in the case of a bootstrap business, it is often important to make sure you have some cash flow sooner rather than later, so keep an eye on this.
And while no business sets out to waste money, in your case, it will be particularly important to stay frugal and keep costs down.
3. Know When To Look For Funding
Starting out as a bootstrap doesn't mean you have to stay that way forever. In fact, it is very common for people to seek funding at a later stage, but if you don't have access to angel investors, venture capitalists, or even most types of business loans, don't despair. You could take out a small business loan aimed at owners who are less likely to be offered financing and get a flexible payment plan along with support such as coaching and other programs. The key here is to know when it is the right time to take this step.
When you can show solid finances and you are ready to take a step into expansion that means more money is necessary, you may want to start exploring your options.
4. Prepare To Wear Many Hats
Later on, as you grow, knowing when and how to delegate will become important, but in the early days, you will need to prepare to do a lot of different jobs yourself. There may still be times when you need to turn to a professional for financial or legal advice, but when it comes to admin and other tasks, you may need to do it all on your own for a while.
When it does come time to add other people, do so carefully. You could start out using a virtual assistant for a few hours a week rather than hiring someone full-time.
The Bottom Line On Better Bootstrapped Businesses
It is not easy bootstrapping a business, but sometimes it is the best way. Keep these 4 top tips in mind for your bootstrap business to build it bigger and better.
