Bootstrapping is one of the familiar the term when it comes to a startup entrepreneur. When an entrepreneur aims at starting his own concern or a company, it is highly uncertain to get an investor. So, in that case, an entrepreneur bootstraps his company, which means he starts the company with the little capital or from his personal finance or from the income generated by the company from the operating revenues. Because when you are at an initial stage it is difficult for an entrepreneur to raise funds, until and unless you have a full proof potentially successful business plan.
Do you want to know, why a startup needs to bootstrap..??
Well..!! The reason behind bootstrapping your startup is to channelize an entrepreneur’s maximum effort into accelerating the growth of the company in order to target and capture a wide audience and market. Instead of wasting time and effort finding an investor, one can bootstrap and concentrate on attaining financial stability of the company and focus on the building up of a strong company.
We bring into some solid reasons for your better understanding which would help you focus more on bootstrapping than on fundraising:
- It would be easier for you to maintain your cultural values, ethics and morals. Since everything you put in is yours, you would not have anyone restricting the norms and procedures. You possess the freedom to explore and experiment with things.
- You are accountable to yourself, which means you are your own boss. This possession would make you concentrate much on the milestones and the metrics of the company than the money valuation.
- You tend to focus on the measure’s to be taken to increase the cash flow of the company because if the company does not perform well then it will hamper the growth of the entrepreneur and the company as well.
- Bootstrapped company generally manages well with the funds they generate and reach a profitable stage. At times when they require a financial push they wisely approach the investors with a proof of their potentiality. So a bootstrapped company has a better chance for future fundraising.
- When you bootstrap you are in a better position to take better decisions, raise voices confidently and you are likely to develop a wise approach.
Now when you know the meritious reasons behind bootstrapping you should definitely try bootstrapping for your startups.
The following part presents some of the ways that can help bootstrapping:
- Build a strong base: So when you desire to bootstrap your startup all you have to make sure is that you have a well- built team with your hand. Be wise when you pick the members of your team. Make sure that they have a good skill set that matches your expectations and requirement. Also, assure that the individual is passionate about the work and can complement his skill with others for the good of the company.
- Avoid Unnecessary Outsourcing: When you bootstrap you need to be very cautious about petty things. Make sure that you do not outsource or hire people for unnecessary jobs which could be performed by you itself.
- Handle money smartly: Have a separate bank account to track the transactions of the business, i.e regarding the expenses and the incomes. Do not put in a lot of money to get a fancy office that too when you are just starting up. Make use of free tools available online and offline. Spend on the core activities that is actually required for the business say technology.
- Develop a good network of people: It needs a lot of trust and confidence for people to work with you. So make sure you concentrate more on building a good personal relationship with people to have a harmonious working sphere.
- Try on the impossible things: Doing something which no one tries makes you make your own way off from the competition. Learn to do things that are especially necessary for your company. This will help the bootstrapped companies get a good customer base.
- Though you may find bootstrapping to be a difficult task at the initial stages, but if you have zeal passion and enthusiasm towards your startup, then you can make your own way and stand great heights in the market.
Well..!! Human’s are so adaptable and dynamic that they can do almost everything at least after learning. The same way one need not fear about bootstrapping as they can very well make an effort to master the art. One can learn some tips and tactics to make it helpful and useful for the company or startup. The below- listed points suggest you some Do’s and Don’ts when you bootstrap.
- Perform your day to day job with full passion and energy and do not quit that at any point of time.
- Be flexible in learning new things.
- Make a way to generate income from a variety of other sources.
- Channelize your effort to draw an audience.
- To build a relation in the beginning, offer work for free.
- Spend the money in a planned and wise manner.
- Be broad minded and welcome feedbacks and advice.
Hence bootstrapping is a considerable and the most desirable way for a startup to begin economically. It is, therefore, an art. The application of the above- mentioned things in a better manner would determine the height, range, and measure of success.
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