It is more harder and harder to startup to compare with Amazon, Alibaba
, Ebay,… and you may go into troubles with most common mistakes first time entrepreneurs make
Anyone who’s started a business on a shoestring is adept at bootstrapping, or stretching resources,both financial and otherwise, as far as they can. But bootstrapping isn’t limited to the startup state. It’s a valid way for business owners to treat valuable resources at any stage of their business’ growth.
Bootstrapping is one of most effective and inexpensive ways to ensure a business’ positive cash flow. Bootstrapping means less money has to be borrowed and interest costs are reduced
Related: Made my first $1,000 in a week – A few thoughts for online business
1. Building your business on a budget.
At first, you should lower your hiring costs . When you’re pouring your own money into your business, you will want to keep costs as low as possible. At least in the early days of your business, this may mean wearing more hats than you expected. Buff advised learning everything you can about all aspects of business such as product development, accounting, advertising and Web design .Therefore, you can hold off on hiring someone for these tasks for a while.
2. Bootstrap for as long as possible.
Bootstrapping prevents you from having to give up valuable equity in your company. Don’t take outside funding to start If you don’t need it.
Many startups will reach a point where it becomes necessary to seek outside funding, but securing backing too soon is a mistake. To seek funding too early results in dilution, and the sooner you become subject to this, the less equity you will have in your company in the future.
To bootstrap for as long as possible gives your product or service time to gain traction and catch on. Only when you can demonstrate to investors that a new influx of capital will go towards clearly defined milestones should you look for funding.
3. Choose your team carefully.
When you are ready to expand your full-time team, you’ll need to take extra care during the hiring process. Employee turnover is expensive, and you don’t want to waste your precious resources on a bad hire. The best thing you can do is create a team with the “full package,” whose strengths cover all the basics necessary for business success.
4. Don’t Strap Your Startup Too Tightly
The biggest benefit of bootstrapping for me is that I own 100% of my company, which means I have the liberty to take it any way I please. You know? There are no outside investors with their own special interests. I am singly responsible for the success or failure of the company. This causes some downside as well. Opinions and advice from investors can be very valuable and beneficial to the expansion of your company. In addition, their networks can produce connections that weren’t previously available. Although I’ve learned quickly that there are many successful startups who are happily ready to give advice and direction without wanting anything in return. Yeah, It’s up to me to reach out and show genuine interest in their advice and experiences
5. Focus On The Customer.
The greatest thing about bootstrapping is that my management team gets to do what’s best for customers, rather than balance sheet. Yeah, I’m trying to run a strong business – and i’ve grown quickly – but if i want to take a calculated risk or go the extra mile for a customer when it’s not in the budget, i can just go for it and act quickly. The downside of bootstrapping is managing the receding and flows of cash flow without a cushion, but banks can help there. All in all, i have a better company with a better process and service because i’ve grown at our natural rate and not at the rate required by capital puncture.
If you have a e-commerce site, it is very important to build a Girft card program
A great way to acquire new customers while retaining the loyal ones is to set up a gift card program. The many benefits of the gift card are often overlooked by merchants. For retail stores and special-service online business, such as book stores and day spas, gift cards are extremely effective marketing tools that can be displayed at the cash register or front desk for easy access
Online Stores that use retail Gift cards are more likely to see better sales results.
Read more at Want to boost 40% profits for your online business ? Here are 8 best-kept secrets of gift card
6. Reinvest in yourself.
The safest investment I’ve ever made is in my future. Read at least 45 minutes a day, listen to appropriate podcasts and seek out mentors vigorously. Don’t just need to be a master in your field, you need to be a well-rounded genius capable of talking about any subject such as political, financial or sports related. And consume knowledge like air and put your pursuit of learning above all else.
I also believe that it is critically vital to depredate yourself to a healthy utmost in order to reward your hard work and avoid burnout. Besides, You should consider splurging on memorable luxuries and experiences that will enhance your lifestyle. Moreover, I get a weekly massage like clockwork, and it is one of the best productivity hacks I employ.
Related: Magento extensions collection, check: Magento extensions and Magento 2 extensions
7. Keep The Profits
One of the most under-recognized benefits to not bringing in outside funding is that it means if you create a lucrative company, you can actually digest and enjoy those profits – meaning you can have a effective outcome outside of a liquidity event. So you want cash to sit on the poise sheet, or better, see it all thrown back into the business.
Related: How I Built An Online Business In 24 Hours With $25 That Made $350 The First Day
