Stop wasting time looking for investors and focus on your customers. Surely one of the tips you’ve heard more if you want to create an entrepreneur or startup. But what is needed to launch a new company from scratch and with your own money? In this post we would like to clarify some of the misconceptions about the launch of startups, and share seven tips on using bootstrapping for its implementation.
Bootstrapping startup does not mean “free” . Always it will cost you something. What it really means is that you’ll be responsible for financing the activities of the company with what is billed without seeking outside funding. Clearly, you’re always going to need money when you put up your startup, but you just have to get it in a different way, by focusing on customers and not obsessing with getting started investment. Thus all you get is a product or service-oriented and designed for investors, not for what they really do grow your business: customers.
There are several possible scenarios in the bootstrapping :
- 100% self-financed : this is the best, but the most difficult to achieve. Describe a situation where you use your own reserves to pay salaries and costs of projects.
- A side business : Bootstrapping is often the best option when you already have a paid job that gives you regular financial resources. In this case it is better not to start your startup only, but to find a good partner to accompany you in the development of the business.
- Start over empty : You build the business, you you throw and you finances. There is no better resource for the progress that the desire to achieve success for yourself.
- Beg and borrow : There are many stories about borrowing from family and friends. But I think there are very few who choose this path. This is to prevent other finance your errors.
In short, the bootstrapping as a business is to build something that people want to minimize risk and maximize the chances of survival. If you are an entrepreneur and you want to create your startup without initial investment , says these 7 tips:
1. Listen, compare and validate your business idea
Do not just ask your friends and family what they think. You will not receive an honest answer. Go straight to people you know who have no interest in the success or failure of your startup. The best way is, for example, asking your potential customers, or someone who has been through a similar situation before.
2. Customer Oobsessions
Who are they? Where are they? And how will I get them? Those are the first questions you should answer.This task should take half of your time.Is the other half?To ensure that your product or service exceeds customer expectations.If you do it right, the first customers will become your reference and even ambassadors of your brand.
3 . The speed in product development is your danger zone, not money
Most often, unfortunately, before starting a business it is that the founders are obsessed by money.Money is a big problem, it is true, but not the greatest for most startups risk.In fact have much money can lead to “splurge” and do many things at once without any effective.It is preferable not to lose focus.Economic growth too fast can take your startup to stop being “special” and losing the essence that characterizes this type of business.
4. Reinvests everything back in business
Do not focus on profitability ahead of time, because you turn your product or service into something mediocre.And mediocrity will not help you get more benefits.Be patient and reinvest the initial benefits of your startup.One of the most difficult aspects when riding a startup, and often tend to all entrepreneurs, is to constantly spend much time worrying about funding.The shortage is not only good for innovation in the project but it sure will help you be more productive.Of course, keep in mind that will be many hours of work.The “bootstrappers” must be willing to commit to working 200 percent more than the rest.
5. Create a marketing campaign as soon as possible
It is important that you show to potential customers even before launching the product or service. So you will create expectations. In this post about personal marketing you’ll find a handy tool to let you know start guide.You will learn what the marketing staff, and what are the fundamental principles of self-promotion are in the context of Web 2.0.Something for which no investment is needed, but can bring great benefits in the future.
6. You can not do it alone
If you have a partner, do your best to get one.Sure you need someone to bounce ideas as the corporate project progresses.If you do not get a cofounder use of the option of advisors or mentors.In the coming days we will publish a post about what a covenant partners and how to do it successfully.Be very careful, because it will be crucial in the first years of your startup.
7. Do not hire full-time employees
In that case the smart and flexible way is to hire freelance professionals when you need them. If your startup requires any task of marketing, design, programming, finance …
Clearly, there are many businesses that need secure enough capital at the beginning.But most startups can start without initial investment.In all cases, the important thing is to design a strategy based on customer and not the investors.For that in our community freelance you can hire a financial plan or business plan, you will begin to take your first steps safely.
What think you of bootstrapping?