Boot-Strapping Tips #1
to improve Success 05/13 compiled by Peter/CXO Wiz4.biz
Many Entrepreneurs are turning to Bootstrapping, as a way to get their Business going with little (or nearly non-existent) capital + the willingness to work hard. The mindset is “make money now, to fund the start-up & growth process. We wanted to share some of these inspiring, creative stories with you.
1. Start with a few $100s. The biggest hurdle for many small craft businesses getting started is that they think they need lots of money to start — more and nice tools, ad placements, large orders of supplies, and so on. But if you are starting a business that follows your passion, you may already have “good enough” tools. Since I started with very little money in, it gave me the chance to quickly make money. After all, it doesn’t take that long to make back a few $100! It also gave me a chance to refine ads and my product offerings on a smaller scale, rather than large wasted ads that weren’t very good (just many small ones!), and no giant orders of products or supplies. Jenn Wisbeck of Midnight SkyFibers.com
2. Raffle Off your Product, to raise $$ quickly. Try to get the most you can, but make winners of those above your cost and everyone will be a winner – you’ll get many new Customers. Include a Coupon, so they can re-order at a reduced price or give it to their friends. Isa Isaacs of Temple of Poi/Blog.
3. A Dime in time! Scrubz Body Scrub, Inc. was started on a Wing & a Prayer and a very thin dime. Even now, we are figuring out how to maintain our growth at the right pace without having to go to traditional lenders. Scrubz was created in July ‘06 and we just moved to our first store, needing to get out of my garage. We have 4 part-time employees. My capital source has been 0% Credit Cards, and borrowing from my own family. I put up about $ 4000, the first year. I am a big believer in Social Media, and use Facebook & Twitter the most. I feel privileged to have started my business around a product I am proud, and humbled by at the same time. It was always about the challenge for me, not so much the money. However, now that the challenge is being met, I’ll take more money to grow my business! Roberta Perry of Scrubz Body Scrub.
4. Drop Ship on eBay! The Customer orders/pays. You then send the order to the manufacturer. You pay the mfr and the mfr ships the item to the customer. You never have to lay out any money. What could be more risk-free? Tobi Kosanke of Crazy K Farm.
5. Never Stop Marketing! I started my first business on the floor of my living room with a dream. My reality was that my funds were limited but my dreams were unlimited, so I decided the best way to achieve success is to fund it myself. I started an intense marketing campaign in 2004. I purchased Cheap Ad space in local Newspapers, Craigslist, Banners, posted & eMailed Flyers & even started hosting small events to spread the word about my business. It did not take long before the Clients started to roll in. The profits started to fund my business quickly. The best advice I can give to anyone who would like to start a business, but lacks the Seed Capital to get started, is to create the Cash Flow yourself. Effective marketing is key to business survival & growth. Carol Sankar Enterprises
6. If I spend a Dollar, Will it make me a Dollar? I am a co-founder of the Bootstrapped Internet Startup, SkillAddiction.com. We launched in April 2009, and the only funds that have been acquired externally were from winning a Business Plan competition and a small award from an Academic Fund. The way that we’ve been able to run so lean, and generate revenue while Boot Strapping is by “always” considering the following question: “If I spend a dollar, is it going to make me a dollar?” While there are lots of fun Website features out there, the only projects that we’ve undertaken are ones that will likely generate enough revenue to justify the expense. Taylor Louie
(Continued in Premium Content)