Startups generally bootstrap their business or idea. Bootstrapping ?? What does that actually mean or refer to ? Well..!!! To that, I would say that it is a process or start where a startup begins all by itself from the position “A”. They do not depend on any kind of external input or sources at the initial stages. Bootstrapping is considered as the most effective and an inexpensive way to begin and generate a positive cash flow. Therefore, it could also be considered as the process to channelize all the efforts towards saving money at the end of the day or making business a self- sufficient one
There are numerous techniques and tactics applied by every startup unit when they set out to bootstrap. Because in this state the ultimate motto of every business enterprise or unit would be save bucks effectively. But, some guidance on some of the very, commonly used technique would be of great help to all the emerging startup entrepreneur in the genre.
With that the below- mentioned part suggests some of the widely applied bootstrapping techniques for a startup business. These suggestions would definitely help you direct your startup in the right pathway.
1. Each penny matter:
It is said, “Money saved is money earned”. Money helps you meet the uncertainties in future. What if you are in a recession phase, what if you want to hire a personal or what if you face any contingency ?? To all the possible, What If ??? Money is the answer to handle the unforeseen circumstances. So, it would be a better choice to cut down all the unwanted expenses and do what is actually required and useful. Plan all your spending wisely.
2. Spend minimal:
Making efforts to spend minimal would let you identify a lot of ways to save money. Surviving from the sources within would help you turn more flexible to changes and circumstances. This technique would also make a startup entrepreneur emerge with a lot of new and interesting ideas. Minimal spending would definitely give birth to cost- efficient and feasible ideas to apply in the business sphere. Above all, it would curb off all the undesirable expenses.
3. Customer is crucial:
You might have started the business with an ultimate aim of making good profits ? But, How would you make it ? Well..!!! Always remember customers are very, very essential to make a business flourish. Build a product which meets the need of the customer. Put efforts to make them happy and they would repay you in terms of beneficial results.
With that also assess the cost of customer acquisition, which means construct an estimate on how much you would be required to target a customer or influence customer towards your product. This will help you judge fair on the necessary values.
4. Find a co- founder:
Two brains can definitely make things much effective. But then if you are too cost- concerned and can manage all the business stuff alone then you might not require a co- founder. Having a Co- founder who can help you complement your business would be a good deal to pounce on. Because different ideas, opinions and thoughts help in shaping the business in an appropriate way.
5. Social Networking Sites:
The exciting thing about the social media is that, they are “FREE” and accessible worldwide. Marketing with the help of social media would be a great option to target all the potential customers out there. Social media can do wonders if used appropriately with a little knowledge and proper guidance. Entrepreneurs fear to spend a huge amount on marketing, and social media comes to them as an angel especially when you bootstrap. It helps you save good bucks.
6. Proper Management:
A proper management indicates all the stuff related to time, focus and goal. When you bootstrap it is very important to stay disciplined and focussed on what you can do and what could be done effectively with the help of internal inputs. Save time so that you get engaged with plenty of other important work on earth. Plan things wisely to attain proper results. Because when you are bootstrapping a little mistake would cost you more loss.
Instead of hiring a permanent employee to perform the consultation service. What you can do is, hire a person whenever the need arises or on a contractual basis to fulfill the needs, This would help you save money. Other than this, one more thing an entrepreneur can do is, offer consultation services to other concern and earn money by offering services. Charge money for the service rendered, this would generate some useable income.
8. Go economical:
One of the most effective ways to make things happen in a fortunate way is by going economical. Push your limits higher to save good. Re- invest the saved money and use it in the business again and save it again. This process would also make you feel confident and positive. Being economical would also have a good impact on your revenue charts.
Therefore, evaluate and analysis every stuff associated with the business to have a self- sufficient business. Build strategies to apply all the techniques and tactics in the business. Practice these techniques just like an art. And you would definitely perfect one day and in fact, come up with new ideas and techniques.