Maybe you want to make a difference only you can make, maybe you want to be your own boss, maybe your lifelong aspiration to be a successful CEO, maybe you have seen a problem in your environment and you know exactly how to solve it and make money doing so, whatever the reason if you want to launch your startup without investors, bootstrapping, is the way to go. However, this, like most things, is easier said than done. That being said, here are steps to bootstrap your startup.
What is bootstrapping?
Bootstrapping can be defined as launching and growing a startup using one’s own personal financial resources and that of co-founders’. Imagine, pulling yourself up from your bootstraps and you have a picture of how challenging launching a startup this way can be.
Despite this, however, there are benefits:
- Your business is completely yours: Unlike when Venture Capitalists invest in your business when you are independently funding your business, no other person has a say. Even though things are faster and easier with a VC when they are onboard your ownership is diluted. If you don’t have a VC, and you bootstrap your startup, you can focus on developing a product around your customer pain points instead of having to focus on managing investor relationships.
- Success is worth more: As challenging as bootstrapping is, the joy that comes from launching your startup all by yourself and having a successful business from your sweat and tears is very rewarding.
1. Get into The Right Mindset
Bootstrapping has its benefits, but it’s extremely tasking. Have in mind that it isn’t going to be a walk in the park. This way you won’t give up at the first few hurdles.
2. Sell Services First
When funding a startup you need a steady flow of income. Consider selling your services as a freelancer and perhaps documenting the journey, or building a community/ support system that you can also get advice from. Keep in mind that initially, you will have to divide your time between your business and doing things outside it for finances, because savings will only get you so far.
3. Get A Co-Founder Only When You Have To
Having two startup founders can help you raise up to 30% more capital, grow customers three times faster, and improve your business scale rapidly. However, consider how choosing a partner for your business also means giving up a sizable amount of your business. If you do decide a co-founder would still be the best route to take, you need to clearly define the roles each of you has. This helps to leverage your co-founder’s strengths and capabilities. It’ll also help prevent power struggles in the future.
4. Find an Advisor
You should consider getting an advisor. As you bootstrap your startup they steer you in the right direction. Through their experience and expertise, advisors can also identify specific areas of your startup’s operations that you can optimize for the best results while keeping your expenses low.
5. Find A Solution to An Existing Problem
Startups need to get recognized by their target market, and the best way to do this is to tell the company’s story and make it relatable to those who need it. Since you are on a tight budget, use resources that won’t cut a huge portion of your money.
Whatever the startup business you have planned, these are tried and true steps in bootstrapping a successful business without investors.
Which of these ways do you think is most important? Let us know in the comment section below!
Source: https://www.blackenterprise.com/bootstrapping-101-how-to-launch-your-startup-without-investors/
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