There’s nothing more invigorating when you’re giving your business a makeover to make the most of your own limited resources.
Because a company can depend so much on outside venture capital and investment you can find yourself at a loss when these resources start to dwindle.
As a result, bootstrapping your business is one way to ensure that you are developing your company, but are also giving yourself that all-important sense of resilience.
Turning your business into a bootstrapped venture is difficult, especially when building up from absolutely nothing, but it can be very rewarding. But what are the best ways to do this?
#1 Find Your Inherent Weaknesses First
From the perspective of the business internally, bootstrapping can mean cutting off our nose to spite our face. Financially speaking, it is feasible to cut back on so many different aspects, but this could mean we lose all semblance of what the company stands for.
This is why you have to find out exactly what aspect(s) of the business you are struggling with. Many businesses operate with little money, but they don’t need outside help. As such, you’ve got to nail down exactly where you are going wrong. If it’s something like your marketing, there are so many different ways to get over this.
You could look at a digital marketing agency network, one of which you can learn more at standoutwithwsi.com, but when you find out the parts in which you fall down, you have a better sense of perspective as to the parts when you can bootstrap first. At the same time, looking at your strengths means you can follow on nicely to the next point…
#2 Selling Your Services
If you have a great idea, but you don’t necessarily have the skills to follow it through in that department, you’ve got to find ways to raise money in a roundabout way.
One of the best approaches is to sell your freelance services at the outset. It’s not necessarily easy, but by outsourcing yourself, you can start to learn valuable lessons in terms of the industry, the finances you need, and how you fare with the current workforce.
For example, look on resources.workable.com, and you can see how to hire freelancers. It gives you an idea of how easy it is to get freelance workers onboard, but also, how much competition is out there. Selling your services means that you are competing with a massive freelance workforce.
#3 Finding The Right Person To Work With You
Starting a business means we have to find the right people. But it’s not just about employees, it is about finding the right person that complements your skillset. It doesn’t mean they have to have the same skills as you, but, if you find someone that’s the polar opposite to you, they have to compliment you.
Finding people that have the same skills means you are halving your profit. As you develop the business, you start to define roles clearly, and as the team grows, you can start to delegate to the other person, and they to you. In this respect, you’ve got a bigger opportunity to make a killing in a financial sense.
But also, never underestimate the power of resources out there, especially on sites like LinkedIn, where you can get an abundance of information on how you can work with another colleague that’s not necessarily on your wavelength, but is essential for the business.
#4 Getting Help From Advisors
Just because you can’t get outside financial help doesn’t mean you can’t get advice. One of the biggest mistakes that we can make is to hire expensive advisors.
Finding the right person to help you along and grow the company can be done by finding the perfect partner, but you need to find the right advisor that contributes real value to the business.
Having long-term guidance and seeing your business through to completion is more important than anything.
#5 Making The Budget Work
Bootstrapping is all about using everything you’ve got at your disposal. It is important when it comes to budgeting, if you haven’t made a budget already, is to start one. What you need to understand is your fixed expenses in comparison to expenses that you have control over.
Fixed expenses things like utility bills, rent, and so on. By looking at these, you can fare better in terms of the overall budget. Everything needs to be taken into consideration. Because if you are looking to make a company that bootstraps itself effectively, you’ve got to stick within the financial parameters.
By preparing, you stand a better chance of surviving in the long run. It’s also about ensuring you don’t cut expenses frivolously. Sometimes we think that having a big office space is important, but if we want to save money, we would be better off in hiring people to work remotely.
We can fall prey to the idea that we need certain expenses and products to show outsiders we have an edge. Instead, think about being lean.
#6 Think About Your Personal Finances
Yes, you have got a business to run, and no doubt you are hell-bent on investing everything you can, but there is only so much you can invest before it takes a toll on your life outside of the office. Bootstrapping means you need to invest a lot of your own personal finances into the cause.
But by investing too much, you’re selling yourself short, and you may very well struggle financially later on. You might think that you can put a little bit of your own money in right now just to see you through, but it becomes a habit that’s hard to break.
Your finances are integral, but you still have to live outside of the office. You’ll have to consider the thought if business won’t take off the way you think it will. It’s not a nice way to think, but it could very well be a reality.
Bootstrapping a business is a very popular process, and it can be done effectively, but ensure you are doing it for the right reasons, and have the right things in mind.
What are you doing to bootstrap your business?