Finding an investor for your business is not an easy task, especially when you have just started your venture. The world sees 11000 startups every hour, which shows the number of options available for venture capitalists. The investors only fund a minor section of startups all over the world and that too after rigorous due diligence. And that
shows how difficult it can be to raise funds for your startup.
In a situation like this, bootstrapping can be a smart move to keep your business going ahead without external funding. However, there is no need to think that bootstrapping is some secondary option to finance your business. Funding your own business in your own pocket can deliver amazing results in the future. You just need to do it right.
Before jumping to investment, it would be wise if you gather insights related to the market and competitors. Studying your market is critically important if you want to ensure the success of the startup. The market analysis of the product or service availability, competition rate, the gap between the demand and supply and other factors are important. Then, you can use the obtained insights to make your product or service aligned towards what market requires. This will enhance the chances of success.
When you are funding your own business, the business needs a revenue cycle from the very beginning. Hence, you should try to generate a business strategy that can create revenue as soon as you start. Otherwise, you can start feeling the pressure of the lack of cash soon. This is definitely one of the most important factors that will help you
bootstrap your business.
Marketing is the backbone of any startup in order to create awareness. The exposure in the media, digital world, and stakeholders and give you the foundation to work with. However, you don’t have enough funds to invest in professional marketing services.
So, it would be wise to invest your time instead of your money in marketing. You know your business the most. So, take the marketing and promotions on your hands. Start marketing your business on social media and let your initial customers help you with the word-of- mouth.
As capital availability is limited to your pocket and business revenue, you need to start thinking as a professional accountant. Start tracking the finances of your business. Make records of each and every penny that you spend in your business. There are valuable tools available out there that will help you do that. You just need to become dedicated towards accounting.
Your personal expenses need to go down if you want to keep on funding your business. There is no need to compromise to the extreme levels. Just make sure that you manage your personal expenses as much as possible. So, you can avoid buying a new car, or other expenses for a while.
Bootstrapping has spawned many success stories like Joe Pulizzi from Content Marketing Institute that went from $0 to $6 million in just 7 years.
Keep these above points in mind to successfully bootstrap your business.