Series: Bootstrapping your tech startup to success, Part II
October 23, 2020
Series: Business plans – Part IV: Lessons from the pros
November 30, 2020Series: Bootstrapping your tech startup to success – Part III
Welcome to our latest entrepreneurial series. This one covers bootstrapping, with tips and advice on the best way to get your business moving with minimal funds. If you didn’t catch our first two you can catch up anytime by visiting our blog here.
Last time we looked at the advantages and disadvantages of bootstrapping when it comes to your tech startup. Now we’re going to look at 10 tips to successfully bootstrap your business.
Let’s dive in:
- Choose your business model carefully: If you’re bootstrapping, then business ideas that need significant immediate capital aren’t suitable. But beyond that, think about business models that have the potential to start generating cash as fast as possible.
- Go one step at a time: Consider keeping your regular employment and starting your own company on the side. As it progresses you can make the call when it’s time to jump ship.
- Do it yourself: Be ready to do everything yourself in the early days. You’ll save money and you’ll also learn every area of your business.
- Work with the right people: Startups require an ‘all in’ approach. The people you work with really need to buy into your idea, especially if times get tough. Look for people whose skills complement your own.
- Stay streamlined: Work from home, focus on just one or two social media platforms for your marketing (initially), avoid business trips and expensive lunches – all these things add up to money saved.
- Get your website domain: It’s unanimous that this is one area where you do need to spend. Alongside having a great website (at this point, way more important than having flashy offices), you also need to own your domain name outright.
- Get a business bank account: Even when you’re starting out, it’s impossible to watch every penny if it’s mixed in with your personal bank account. Keep things separate from Day 1 and use free online tools to track and analyse your spending.
- Learn to barter: Look for opportunities to swap products or services with other companies, where you can both benefit.
- Establish relationships with suppliers: This takes time, but having suppliers who are on your side is a huge advantage, especially when it comes to asking to extend payment terms.
- Don’t give up: Bootstrapping is an adventure, and it’s not always easy. But networking, creating connections, getting good advice, then staying the course is key. You will meet setbacks, but it’s how you respond that will help determine your startup’s future.
This wraps up Part III of our bootstrapping series. Our fourth and final instalment will look at some legendary bootstrapping success stories and what you can learn from them. Until then, consider the above points carefully, as the decision to bootstrap is not one to take lightly. It can decide the entire course of your company.
