Go With What You Love and Know
It’s worth staying in a familiar business domain that lets you avoid costly mistakes. By focusing on the area of business you’re passionate about and have a wealth of knowledge in, you can leverage your existing connections to get things done without requiring large sums of cash.
Find Team Members Willing to Work for Equity
It’s not easy managing contracts and employees, and when you’re just starting out in business, your cash is usually tight. Rather than garnering teammates looking for cash, locate teammates who are willing to partner up and work for equity. Over time, this becomes a win-win situation for you and your teammates. You get the help you need now from your teammates, while your teammates get a stake in the company from joining early on and helping your business grow.
Plan Around Your Budget
Without a plan, you are setting yourself up to spend more than you should. Bootstrapping requires you to be diligent and to save and plan for unexpected costs. Focus on your budget and build your plan around that number, so you can concentrate on the essential expenditures for your business.
Negotiate Inventory Management
Don’t let how new you are to business keep you from leveraging the power of asking for what you need. Ask for upfront retainers for services to help balance out your expenses. Also, reduce inventory costs by negotiating with your distributors and suppliers to directly ship your product. This helps to remove the expense of renting a warehouse or office to hold your inventory.
Enhance Revenue Flow With an Optimal Business Model
Optimize your revenue flow by selecting the business model that best meets your needs and financial goals, one that preferably creates revenue quickly so you can avoid burning through your cash. For example, if you want to provide a membership with online courses that keep customers coming back, consider a subscription-based revenue model that facilitates automated payments, such as the recurring payments services by IntegraPay. With recurring payments, you don’t have to worry about missed payments; the service automatically debits monthly payments for you.
Bootstrapping your business isn’t easy, but it is possible and worthwhile when you’re just starting out. By having a game plan for bootstrapping your business, you can reduce the chances of running out of money while improving your bottom line profits.