Everywhere around the world people are more interested in starting their own business than doing a typical 9 to 5 job where you are working towards someone else’s dream. Nowadays, many people are willing to take their chances and build something more meaningful, and they are ready to take risks for their dreams.
To turn these dreams into reality, the first thing a small business need is capital or small business loans, and there are plenty of ways to do it. Some small business opt funding rounds and get their capital from investors while some go with VC’s, where small business share their part of the business with them. But, most daring ones are those who decide to bootstrap their business where they get their small business running with their own money.
When bootstrapping everything is at stake and it always ends up being a make or break situation for the founders. Doing everything right is the only option they have and here are the 5 things to do when bootstrapping startup/small business:
1. Pick Your Partner Wisely
While choosing your co-founder, keep in mind that he is going to be the one against you and for you at the same time. All those critical decisions, those long small business pitches and all the sleepless that you are going to have while growing your baby small business; he will be the one doing by your side. And you need a determined and experienced person for that. Always choose the one who agrees with and at the same time can call out on your bullshit because you are going to need it to run your small business.
Choose a person who compliments you and your skill sets and is ready to give you a run for your money. The one who will challenge you and your beliefs and working style from time to time and will help you grow into a better and smarter person.
2. Cash Generating Business Model
When investing your own money you have to be smart about it. You can’t just pour money without getting any ROI because your pool of cash is going to dry out sooner or later without any source of income. And without cash, you won’t get a chance to introduce your small business to anyone.
To avoid this situation, you need to design a business model where your small business is generating money quickly and from the beginning. This will make sure that you keep your small business afloat before making it in the real world.
Pro Tip: Generating a good business model only won’t be enough. You have to keep a real close eye on your cash, where it’s going, how you are spending and what’s the ROI on it, everything little thing where you spend is worth keeping an eye on.
3. Be Economical
You have a business that is up and running and is generating but that doesn’t mean that you start spending it on anything. You have to be very clever and economical about where your money is going because this is the only thing that will help you give an edge your small business.
Always categorize the things you are going to buy into: NEED, WANT and LUXURY. This way you won’t spend any extra money on the things you don’t actually need. You only buy the things you need for your small business as well as your business because at the end of the day it is your personal money that you have put up for the small business.
You don’t need to have those fancy offices, desks, MacBooks to get the job done. You can pick functional over posh, try the free versions of the tools for the business, get the refurbished things instead of buying sealed ones. Because all the small things are going to end up creating a big and beautiful thing at the end.
4. Hire the Smartest Ones
You have a small business, a co-founder and money to invest but if you don’t have your soldiers on the battlefield then how are you going to actually make it. And you don’t need just anyone; you need the smartest and proactive ones. The ones who know how to get things done and how to get the things work in your favor.
All the people you hire are the ones who will be the backbone of your company. So, make sure you hire the best of the lot. And don’t get offended if your employee knows well than because that is going to turn out well for you. Smarter employees will challenge you and make you want to change for your own good. They will surely take your company forward. But there is a thin line between smart and over smart ones. Make sure you don’t pick the latter ones.
Pro Tip: Hire only when required. Your employee won’t add any value to the company if you are going to hire him when you or your partner can get the things done. Getting employee too early can sink your ship before leaving the port. Be smart about the hiring decision.
5. Nothing is Impossible
You took a decision where you left your comfort zone and safety net for the Unknown. There will be lots and lots of ups and downs and the key to surviving everything that comes in your way is to never take “NO” for an answer. You will be dealing with thousands of people, vendors, suppliers, clients, partners and much more and everybody is not going to say “yes” to everything you ask them. There will be No’s and there will be people who will give you the hardest time of your life and you will rise above it and achieve that success everybody yearns.
All the above-mentioned things and strategies are the vital parts of a small business if you are bootstrapping. If you are bootstrapping, you are one hell of a fighter. Keep fighting the battles because at the end, people who preserver are the ones who make it.