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Tag: bootstrapping startup

  • 20 Best Tactics for Bootstrapping Your Startup

    Looking for ways to bootstrap your startup? Do not want to go into a huge process for marketing? You might be lucky enough to know that there are more ways to bootstrap your business other than spending resources on marketing.

    Bootstrapping your startup business strategically is the new trend today rather than adapting to traditional methods of marketing strategies. But, before experimenting with new things startup business owners should know what they need for their business.

    If it helps try doing a SWOT analysis first as it will help understand your strong and weak areas of business. Then you can look at the tactics mentioned below to bootstrap your startup business.

    Best Tactics to use for Bootstrapping Your Startup

    1. Write and publish quality-focused blogs
    2. Make sure your business has been listed to the reviews and listing directory
    3. Use Product Hunt
    4. Find an advocate or a partner
    5. Conduct webinars on your products or services
    6. Target your customers
    7. Create a Facebook page or a group
    8. Use online methods
    9. Conduct an in-depth market research
    10. Do not rush for an office space
    11. Design a proper business model and a plan
    12. Work from home
    13. Do not rely on Client’s credit
    14. Take help of your family members
    15. Use low-cost online tools
    16. Avoid purchasing unnecessary tools
    17. Learn digital marketing
    18. Work on your business image
    19. Always be resourceful
    20. Motivation plays a key role

    Conclusion
    FAQs

    Guide for bootstrapping your Startup

    Best Tactics to use for Bootstrapping Your Startup

    Write and publish quality-focused blogs

    Tactics for Bootstrapping Your Startup
    Tactics for Bootstrapping Your Startup

    Start writing quality blogs in about your business answering questions like the five Ws. People will know what your business is all about if you know how to attract them with the power of your blogs. Using keywords in your blog will do half the job and will help your blog to rank high on the first page.

    Once you have completed writing in-depth blogs try publishing your content on different social media like Facebook, Reddit, Twitter, LinkedIn, etc. Do not opt for link dropping and other such kinds of things but, try doing it with a sense of taste behind it.

    Make sure your business has been listed to the reviews and listing directory

    Business listing is important because it can play a crucial role for the success of your local SEO. These are types of platforms that will allow the users to find out more about your business and also help engage with it. Some basic information like name, address, and phone number are added so that interested users can contact you.

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    Use Product Hunt

    Product Hunt is an online website that you can consider using because here your products can be listed in a linear format. Keeping aside its functions one of the biggest advantages of using this website is that it can be used as a free service.

    Find an advocate or a partner

    Tactics for Bootstrapping Your Startup
    Tactics for Bootstrapping Your Startup

    You do not have to find someone who is a professional but a normal person who can have your back at the right time will be enough. If you find someone who is great at work and is available for you whenever you need them then you have got what you need.

    Conduct webinars on your products or services

    More promotion will only create a better chance of bootstrapping your business. Webinars can be conducted free of cost on various online networking websites. Look for the right one and just get into it because the sooner you start the better you can create a customer base.

    Conduct webinars/meetings frequently so that you inform about your products and services to more and more people. You need to start generating leads and then nurture them as well to create a better impact on your business.

    Target your customers

    Whether it is one customer or one hundred you should know that it is just the beginning of a long journey. Target customers to whom you can provide your service to them and solve their problems. This is where you don’t sell your product but give an idea to them about the problem that they are facing.

    If you can get into their minds about the solution you are giving to them for their problem you will be surprised to know that they will start coming to you after a certain period. Therefore, do things smartly rather than doing them with difficulty.

    Create a Facebook page or a group

    Just like you use Whatsapp groups for sending a message where more number of people will be able to see what you have sent similar to that you can create a Facebook group. Facebook has got around more than 2.9 billion users and this is why it will be a great platform to showcase your business to a large number of people at a time.

    Use online methods

    It is difficult to conduct business activities, especially when it is a startup and thus there is pressure on the sustainability of your business. If you choose online methods for conducting business then you may cut down maximum costs and also help protect your assets.

    Conduct an in-depth market research

    Just like you will do a SWOT analysis of your startup business you also need to do thorough research on the market. You are now the boss of your company and getting to know all the dynamics of your business should be your responsibility.

    If you are well-prepared you will not be needing capital from someone else. Look for online tools on the internet that will help you conduct online surveys.

    Do not rush for an office space

    There will be a lot of things going on in your mind once you have started your business and one of the major things that you think about is having an office of your own. Well, if you are thinking about it then that’s well and good but there will be no need for an office if your products or services do not do well in the market.

    Give your business some time to grow which may take some time and then you can look for an office. New offices will be needing types of equipments like furniture, computers, CCTV cameras, and many more which will only create a burden on your expenses.

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    Design a proper business model and a plan

    Tactics for Bootstrapping Your Startup
    Tactics for Bootstrapping Your Startup

    Most entrepreneurs tend to make the mistake of not planning what should be done next. This is how they waste resources and are not able to sustain in the market even though their business has the potential to do good in the market.

    Therefore, it is suggested that you design a proper business model and a business plan. A proper business plan helps the business to work efficiently by fulfilling its achievements.

    Work from home

    Offices rents’ are going up as each day passes by and you need to cut down expenses not increase them. Working from home can do the job that most offices can’t. If you can have the option to work from home comfortably then why not use the benefit of it. This way you can concentrate better on your work and you will save a lot of cash.

    Do not rely on Client’s credit

    Even though your startup business is a work-from-home work do not give your clients products and services on credit but rather ask them to make immediate payment. This is just the beginning of your business and you are already making expenses and credits can make things worse.

    Ask your clients to make payments as soon as they receive the product or service. This way you can keep a proper account of the business that you have conducted.

    Take help of your family members

    Your family members can be useful in some kind of work for your business. For example, your brother can create a page on social media and he will solely be responsible for promoting your business on different social media platforms.

    Similarly, you can even take the help of your relatives who can be useful in different activities. This way you do not have to hire an extra person to do a simple job and you can concentrate on other things.

    Use low-cost online tools

    Since you are working from home you will be needing different kinds of online tools for marketing or conducting other business activities. Use tools that are available at a cheap price not necessarily a free platform but a cheap one will do the job.

    Since it is just the beginning of your startup business you need to make sure that your expenses are not extending your budget. For the time being, using cheap tools can be useful and later when your business is flourishing in the market you can opt for expensive or premium tools.

    Avoid purchasing unnecessary tools

    Whether you are buying an online tool or an offline one make sure that the tool that you are purchasing can b of some use for the business. This is one of the most crucial tactics for bootstrapping your business because you do not want to go into debt by making unnecessary purchases. Purchasing expensive tools that will be of no use for your business will only create pressure on your finance.

    Learn digital marketing

    With changing technology there are so many upgrades that are being made each day. You need to learn about the technology and use it to your benefit as your business needs to be recognized by more people.

    A digital marketing course will help you understand how to market your business digitally. If you know about digital marketing then there is no use spending time on the courses. Apply what you have learned and see the results.

    Work on your business image

    There is a saying called ‘First impressions are always the last impression’ which is quite true when it comes to business as well. Your new business should be presented in front of the people in such a way that they are impressed with it.

    The image of your business will play a crucial role in getting customers from all around the country or globe. Use appealing photos, images, videos, animations, and other such kinds of things so that customers are attracted towards it.

    Always be resourceful

    Being resourceful does not just mean focussing on your resources but planning on how to grow them. You should gather enough money to fund your startup business because in the initial stages of your business will be difficult to find investors.

    However, there are several free online platforms where you can get the benefit of crowdfunding. Whatever decision you take make sure it will help you with your work keeping the cost structure under your budget.

    Motivation plays a key role

    Even if you follow anyone tactic mentioned above you need to be motivated at your work. Every day when you wake up you need to keep aside all negative things but move forward with the intending to grow your business.

    You should always be eager to learn new things from the market and your competitors so that you do not fall out from the competition. Motivation will also help you bootstrap your startup.

    Conclusion

    Whichever tactic you choose to bootstrap your business try to do it with a focussed mind because it will help your business itself. Even if you are facing a lot of challenges continue doing the same thing but in a different way.

    FAQs

    What does bootstrapping mean?

    Bootstrapping from a business’ point of view means starting a company with little capital rather than relying on investors.

    What are the benefits for adapting bootstrapping techniques to business?

    Some of the benefits of bootstrapping your business are:

    • Cheap and efficient
    • Complete control of ownership of the company
    • Might make funding easy in future

  • How to grow a Bootstrapped Startup? | Everything about Bootstrapping Startup in 2020

    Bootstrapping means to start and grow a startup from scratch without anyone’s financial help. Bootstrapping Startups promotes innovations. Bootstrapping has become necessity for some startups.  A bootstrapped startup is responsible for its own survival. The growth of bootstrapped startup depends on the revenue obtained. When you bootstrap business, the focus is on ideas, innovation, and teamwork.

    Bootstrapping Startups is a process in the business world by which a new business starts its operation without or little amount of external funding. Any bootstrapping entrepreneur must think of alternative ways to earn money to grow the business. It promotes proper utilization of time. Looking for investors might take a lot of time chasing them and its not a guarantee you will get funded by them. Money has to be spent wisely as the bootstrapping entrepreneur is the only one to control the business and resources are limited.

    List of most successful bootstrapped companies
    Advantages of Bootstrapping Startups
    Disadvantages of Bootstrapping Startups
    Advice for Bootstrapping Entrepreneurs
    Tips for cost cutting and save funds for Bootstrapping Startup
    Conclusion

    List of some of the most successful bootstrapped companies

    • MailChimp
    • Github
    • Shopify
    • ShutterStock
    • Zoho
    • Wingify

    Advantages of Bootstrapping Startups

    Some of the advantages of bootstrapping your startup are:

    Full control

    The future of a bootstrapped business is determined by itself as it takes its full control. Owners are not answerable to any outsiders (investors) but themselves. Bootstrapped Business owners should have a clear direction of their own business. Their beliefs should guide them in the direction to take with their business. Sober decisions have to be made as this will determine if it will affect a business negatively or positively. Investors or any other money lenders come with their own vested interests and might give you different ideas from what you believe in. Bootstrapping startups works very well in such a scenario. There is freedom and you can run a business the way you wish. Bootstrapping removes unnecessary interruptions from outsiders and lets you focus on your goals.

    Customer oriented and focused business

    Bootstrapping Entrepreneurs need to treat their customers well because customers act as their bosses or investors. It is very easy for a bootstrapped business to die if the customers are not convinced to buy from that company anymore. If you are bootstrapped entrepreneur, think of your customer whenever you are making any move or decision with an aim to attract and convince them more and more.

    Sustainable

    Bootstrapping is considered a business model that is profitable. As business continues to grow, you gain more experience and sustainability. External funding cannot guarantee this. Startups that are externally funded might end up relinquishing in debts to a point of giving up. The business might end up not profitable to them.

    Bootstrapping promotes efficient management of resources

    Realistically, when you don’t have enough funds, you will be careful in spending any of them. This brings efficiency in terms of managing and spending the little cash you have into a meaningful sense.

    Bootstrapping promotes creativity

    Ideally, when you don’t have enough cash, you look for alternatives on how to sort out your problems. To make the ends meet, you will be required to identify the resources around you and make use of them. Bootstrapping makes you think of ways to get things done in a cheaper and affordable way, hence improve your creativity.

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    Disadvantages of Bootstrapping Startups

    Everything has two different sides. So, here are some of the disadvantages of bootstrapping a startup:

    No Shared Risk

    Investing in any business alone may attract a lot of personal risks especially when the business closes. If the business doesn’t make any profit everything will be lost. And the only person who will bear that all will be the founders.

    Minimal Networking

    Any business needs a lot of partnership so you may network. Capitalists and other investors have huge list of networks. Linkage creates opportunities for new market and makes you visible. Investors usually offer advice and full support required for any business. You may miss their expertise to run the business.

    Slow Business Growth

    bootstrapped startup

    Basically, when you don’t have enough money for start everything up from scratch, business growth will always be slow because you are operating with very minimal and limited resources. While bootstrapping your startup, you can only pace up with the growth when your business start making good money.

    Advice for Bootstrapping Entrepreneurs

    The idea of starting a new startup is fascinating, but in reality, it’s a tough nut to crack. There are numerous elements that should be considered before launching a startup and it’s a fact that 50%  of startups doesn’t survive a month. Launching startup needs a deep study of the product you are offering and deep market research is required.

    Every startup needs a different kind of approach, but the general advice that a bootstrapping entrepreneur needs to enter the market are:

    First sale, then production

    The first and the important step to start a new bootstrapped business is to identify the market where you want to sell your product or service. It’s advised for Bootstrapped startup founders that first the market should be created before launching the startup. The demand for the product or service which you wish to sell should be examined and the product and strategy should be designed according to it. The 90% of the startups fail because they never assessed their market. The product that you are offering should be according to the preference of customers, not of your own choice. The customer is a king, so you need to sell what he wants to buy and not what you want to sell. This is a mantra for every startups.

    Think hundred times before spending

    It’s the harsh reality that startups have tight budgets. Bootstrapped startup founder should critically examine before making any purchase and try to avoid any unwanted expenses. The future of the startup is uncertain, so it’s best to save as much as you can for the future.

    Go Virtual

    The Internet is the biggest tool for the startups. Build your virtual office and save yourself from unwanted expenses on office rent. The different portals are available where startup owners can promote themselves and sell their products directly to the right audiences. The Bootstrapped startup founder can hire employees virtually to save the cost and pay according to the work. It’s a win-win situation for the bootstrapped companies and freelancers.

    Select the right medium of advertisement

    There are various mediums available where one can promote their product or service. But most of them are waste of time and money, as only one right medium of advertisement should be used according to the targeted customers. For example, if you offer services to the new business ventures then there is no need to advertise it on TV or radio. You need to visit business seminars and meetings to get the business venture opportunities. So it’s very important to select the right method to sell your services and product via the right advertisement medium.

    Make books and follow regulations

    The new startup owners should make themselves familiar with prevailing rules and regulations of the industry. The books of the accounts should be kept according to the law and it should be regularly evaluated by experts. This way, the entrepreneur can save money by not hiring consultants for everything.

    Hire a business coach

    bootstrapping business

    Experience matters and to bootstrap your startup, seek the help of an experienced business coach, who can guide you at the time of crisis and provides all the technical knowledge. So ripe the experience of expert and learn something productive from them.

    Tips for cost cutting and save funds for Bootstrapping Startup

    Offering Discounts

    Discounts should be small. You should focus more on starting and surviving rather than just acquiring customers. Offer the discounts only for a limited period and to selected people via competition or lottery. The people will be glad to get chosen for the discount opportunity and may promote your product among other people to show their own achievement. In this way, the money gets rotated and it can be saved for the further purpose.

    Investing

    For a bootstrapped company, the initial investment for the business should be savings. It should be the primary source of bootstrapped funding rather than taking money from family and friends. Entrepreneurs should estimate investment for the future. Higher Investments for the product or sales without assuming the demand may damage the economy. Depending on the supply of the product you should not estimate the funds required. The demand of the product should be considered more to decide the amount of investment.

    Exact Planning

    Avoid business planning for a vast reach of your company at the starting stage in order to save the money for the future development. The start should be local so that it costs less and make more profits. Once, you have your reach in your own area or city, then save enough funds and again bootstrap to start your service in other cities.

    Estimations of buying products

    You should estimate the assets you will need to start the business. If you overestimate, you will end up with useless resources and lose your money. If you estimate less resources, then you will have to waste your time to go and buy more assets. Estimations should be appropriate.

    Spending money

    bootstrapping a startup

    While spending the money, the flow should be slow and steady. It should be maintained in the correct order that it should not affect the future economy of your bootstrapped company. The purchase of the goods or production should be kept limited in order to control finances.

    Partnership

    You can partner with another person so that he/she can help you with their expertise and share their savings with you. This way, you will share the risk with someone and both the parties will have lesser risk. However, getting a partner in a bootstrapped startup need trust. When you bootstrap, you put your everything in that company. And the partner have equal access to everything and can cheat you anytime. So, instead of asking random people online to become your business partner, find a trusted person from your friends and family.

    Hiring

    Hiring the staff in a bootstrapped startup is a very crucial activity. You don’t have enough funds to pay the employees, neither the surety of success. So, hire only the enough amount of employees. Moreover, you should also avoid renting the unnecessary office space.

    Suggestions

    Don’t avoid others’ suggestion of other people. They can help you take better decision. You can attend business events and talk about your bootstrapped startup to know their views about it.

    Marketing

    Marketing is the best investment for any business. Instead of going for expensive paid marketing campaigns, you can create content related to your company which can go viral. For an instance, Dollar Shave Club became famous after their viral video ad titled “Our blades are ******* great”. Social media is a great place to get heard.

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    Conclusion

    Many Bootstrapping Startups become very successful. Their founders are careful and wise in spending funds and accountable for their decisions. They get business experience at every stage of their business growth. They also develop their own strategies on how to execute the business. They establish a customer base hence increase the sales. To start, bootstrapped startup founder requires an optimum level of dedication and hard work. So it’s advised to you all young ambitious entrepreneurs to make a leap and start your journey with a positive attitude.