Taking a lackadaisical approach towards starting up your business can be one of the more compromising positions you can take as a business owner. Too many times, we tend to tell ourselves to slow down because of shortage of capital even when the market is ripe for the business. At that moment when we have decided to start, the market has waned and we are stuck with a sale business idea.
Bootstrapping your startup does not require a degree in finance or an executive MBA certification from the top business schools in the country. On the contrary, it requires nothing but common sense for a savvy business owner to realize that bootstrapping can be the only solution towards starting a business and making it profitable.
Here are a few bootstrapping startup tips to help your business hit the ground running:
1. Choose a minimalist office environment rather than a fancy one. One of the biggest letdowns to a business startup is glamming up the place but is this really necessary? There are no online MBA programs that will tell you the necessity for a cute office space. The best online MBA program will tell you to focus on your business so forget getting the nice space; if you must start in your house just to get the project going, then so be it.
2. Be meticulous in managing your cash flow. True bootstrappers take their business by the neck and run with it. In this regard, it is important to manage your cash down to every penny. You do not need a mortgage life insurance to know that every penny counts towards your business’ profitability. Conversely, plenty of businesses have come undone with small untracked expenses that eventually balloon into a bigger sum. Avoid these concerns by being meticulous with handling your finances.
3. Take advantage of freelance work to avail of virtual staff. There are plenty of graduates of an online computer science degree that, for example, are competent enough to program your new website. It is not necessary to hire staff as permanent employees so you end up looking after their taxes, medical benefits, and whatever else is required by law. Better yet, by outsourcing your staff, you do not need to employee anybody with masters in nursing programs because you do not maintain an in-house staff which, by law, requires a clinic and other relevant services. If you go the virtual staff route, you only pay for service rendered and save up on everything else.
4. Find discounts and use these to your advantage. Any discount that you can avail of goes into your business’ bottom-line.
5. Use merchant cash advance offers to your advantage. It is imperative that you raise the cash before your business is in full fight mode. Running out of capital in the middle of a venture will push revenue away and this is something you do not need especially if you are only beginning to make a reputation for yourself.
Be mindful of these tips when trying to grow your business from the ground up. Remember that many of the big businesses today that began as smaller ventures, like nurse practitioner schools and consultancy companies, had to exercise the most battle-hardened tenets of bootstrapping to make their businesses successful. So lay off your dreams of flats to rent in Cape Town; instead, focus on your growing your venture and it will take care of itself in the future. All that because you hunkered down and took your business by the bootstraps to get it going!