fm Huff Post 05 Sept 15 enhanced by Peter/CXO Wiz4biz
Whether you’re just starting out or need to cut down on current expenses, these economical tips from Startup Founders will set your business up for success.
1. Be “flexible” with your Finances. If you aren’t independently wealthy, you’re probably going to take a pay cut (or work for free). Boot-strapping doesn’t work if you need lots of perks & amenities or lack a plan to survive on less (or no) income for a long time. You may think you’ll raise money quickly — and you may — but the point of boot-strapping is to be in a position to raise money when the business needs it, not you. – Ross Faith, Sepectrum FX
2. Have a Realistic Mindset. While it may seem like everyone on the internet is making a ton of money at an incredibly fast rate, it’s actually the opposite. To make it as a successful boot-strapped business, you need to have a realistic mindset and appreciate the time, work & effort it takes to grow your idea into something amazing. – Zack Johnson, Blogging.org
3. Stick to Cash. I’ve built our thriving business from the ground up starting with nothing but a laptop. As the old saying goes “Cash is King,” and there is nothing more satisfying than paying for everything in cash. It keeps you from going into debt and builds your business on a solid foundation by slowly & steadily paying for equipment & staffing as you grow. It may take longer to build your business, but it’s also less stressful. – Stephen Newlon, Syn3rgy Creative.com
4. Ask for Pro Bono. (not Amateur) I’m always amazed at how many people will provide pro-bono support to super early-stage startups just because you ask. Many legal firms do “pro bono” work as do many other types of service providers. – Lisa Curtis, KuliKuli Foods
5. Keep an Eye on your P & L. Remember that you are playing with your own money here, and when it runs out, it’s gone. Learn to focus on your Profit & Loss. Strive for profitability early on, and stay away from un-necssary expenses. Fair pricing & customer retention become very important. When you focus on P&L, you are looking at your numbers often and for ways to improve them. – DJ Fingers, Arroyo Labs
6. Consider your Surrounding Benefactors. Boot-strapping is about turning every situation into a “win-win-win” for all involved. Always lead by “giving”, as it’ll help in the long run. I’ve boot-strapped many ideas into fruition by looking at all of the surrounding benefactors of my efforts, bringing them in on the opportunity, getting their advice & together making it happen. Cross-promoting with complimentary brands at this stage is a good situation. – Maitland Lewis, Pretty Instant.com
7. Prove the Value of an Investment, before going “All-In”. When you’re boot-strapping a business, you don’t have endless resources to spend on things that aren’t working. Do small tests before committing to big spends – wherever you can. For instance, plan a few $25 online ad spends before investing more heavily in your most successful version. When it comes to hiring, try potential employees out as freelancers to make sure they can deliver. – Kathryn Hawkins, Eucalypt Media
Comments: Is there anything you can say about running a Lean Machine?