July 29, 2011

Five Tips for Bootstrapping Success

What is the best thing that you find being an entrepreneur? The answer will surely be "Independency". Independency from being called as employees, independency to work on own terms, independency to frame a business empire of your wish. However, this independency is possible only when you have bootstrapped your business with no other source of funding either from venture capitalists or from bank or any financial institution. To enjoy this independency, one must know the rules to successful bootstrapping.

Do not Wait for "The" Time

Being a startup, you do not have time to wait for a special occasion to launch your product for the customers. In gestation period your business may not be functioning, however, there are several expenses that still need to be paid off, such as bills, rent and several taxes. Grab the first and the nearest opportunity available to go open and get close to your customers. Try to create a database of such customers who you feel can be a loyal customer and apparently try to convert them to be the one. Accept the suggestions and if viable, take it on hand to adapt it as quick as possible.

Make use of Free Resources

Do not ever hesitate to grab on the free opportunities available. Join various forums and feel free to ask your queries to the expert. These are available free of cost and are of great value for your organization. Many big players are there who can give you consultation on various aspects of your business.

Take the advantage of viral marketing and word of mouth by raising the customer satisfaction and converting them from loyal customers to advocates of your product and company

Cash or Credit?

Working capital is the blood for every business. But for a startup, it is the DNA. It helps to pay off the daily expenses of the business and build the inventory for future transactions. This can smoothly happen if you ask your clients to pay off the amount in cash rather than on credit. But when it comes to payment to the suppliers, ask for installment facilities with low interest rates. This will help you to stock the cash to be used for some other important purposes.

Shed off that Ego

The startup entrepreneur needs to shed off his ego and become a versatile genius. As the business is his brainchild, he knows better where and how he wants to take his business. On the other hand, he could save money in terms of paying salary to sales manager, stock analyst, supervisor and many others. He can use his primary skill to establish the business to a particular standard and then hire people as and when required. Fold your cuff and be ready to dirty your hands.

Be Flexible

Making a yearly plan and following it is a good idea. However, be flexible to adapt the changes as per its occurrence. Be flexible enough to deviate from your original plan. Inflexibility may affect your company and profit growth. Adapting changes according to the prevailing market may lead you to reach your target more quickly and efficiently. It may also help to curtail certain unwanted situations and make you stand still in the market with your competitors. Unlike big companies, who can withstand loss, a startup should be more flexible.

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