7 Ways to Bootstrap Your Business Idea

In my line of work I am lucky enough to chat with business owners all over the country, about every aspect of their business, not just the ins and outs of finance topics like business credit cards. One of the most interesting topics of conversations I love getting stuck into is how some owners got to where they are today by “bootstrapping” – launching a business with little money or external support. Here are seven common ways business owners bootstrap their business plans.

1. Choose a business plan in line with your saving

Integrating online accounting software and exploring revenue-based funding options can significantly impact your decision-making process when selecting a business plan. If you’re venturing into the automotive industry, you may find that the initial capital required is beyond your personal savings. Opting for a business plan that aligns with your financial constraints becomes crucial, especially if you prefer to avoid relying on external funding sources. Assess how much you can afford to invest from your personal savings and consider your monthly income (if you’re still employed in a day job). By carefully evaluating your financial capacity, you can choose a business idea that accommodates these limitations, increasing your chances of success while maintaining financial stability. The combination of effective accounting management and revenue-based funding can provide the necessary financial foundation to pursue a business plan that complements your financial situation and aspirations.

2. Choose your business partner wisely

Your lean business plan can do without expensive employees, at least for now. That’s why finding a good partner / co-founder is a useful workaround. Partners should be just as dedicated as you are to making the business a success, so you can begin to split the heavy workload of making your plan viable from the get go. As an added bonus, if you partner with someone who has skills you lack, this can be a good way of ensuring your business doesn’t fall down because of an area you are personally weak in.

3. Spend time on your business plan

It’s all too easy – in the excitement of starting out – to jump straight into doing business wherever you can. However, cooling your jets to spend a little bit of time on writing a business plan is a very good way of ensuring you don’t waste even more time further down the line. Done well, business plans will sharpen your mind about the size of the opportunity ahead of you, the competitors you’ll need to look out for, and how the venture can expand in the future. Don’t put it off – get writing! 

4. Call in all the favours you can

Use your strengths to avoid paying full price for work wherever possible. Perhaps you were previously employed in design, in which case maybe you can get a discount (or free work) in exchange for revamping your supplier’s website. Use your strengths – and your savviness – to see what you can barter for. Of course if any friends owe you a favour, now’s the time to also call it in! 

5.  Use the family

Like your friends, but even more hardworking; your family can be your greatest asset early on. Ask them for help and you’d be surprised at the lengths they’ll go to help you out. They may not be able to contribute monetarily but even assisting you with small tasks such as packaging and delivery can all go towards making sure you don’t spread yourself too thin in the critical early days.

6. Go digital 

Investing in physical space can be one of your biggest money-sucks when starting up any business, so think about how you can do without it. Nowadays, consumers are quite used to purchasing products and services online instead of from a brick-and-mortar store, so instead of trying to find the perfect location, why not make sure your website and ecommerce pages are live, looking slick and are easily findable online?

7. Consider the crowd

Some may say that crowdfunding isn’t proper bootstrapping, but I disagree: done well, it’s like getting a massive whack of pre-orders all at once. List your campaign on a crowdfunding platform like Kickstarter or Indiegogo and – if it gets picked up – you’ll get a high volume of pre-orders which can go towards funding the manufacturing costs of the goods. However, make sure you spend a lot of time crafting your crowdfunding campaign, as there is a lot of competition on these websites – so you have to make sure your idea stands above the crowd.

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Finally, however you decide to grow your business, always remember to keep a check on how you’re feeling about it all. Starting out can be really hard and often a bit lonely, so make sure you invest time in getting a break, socialising with others and not let the business idea overrun every aspect of your life; that’s the best way to avoid burnout and maintain a healthy business in the long run.

Good luck!

This post was contributed by Jamie Maddison, iwoca.