Starting a New Business with Bootstrap Funding

Keep your day job — for now. You might be able to start your business by working on it during weekends and evenings. That way, you can afford to experiment with different versions of your business until you find the one that seems most likely to succeed. Ideally, you can get your business on track and accrue a healthy backlog of orders before you quit your job.

Work part-time. Try shifting from full-time to part-time work when you start your business. This move makes the most sense in the early stages of your new venture, when you need to devote more time to finding customers and delivering products and services to them.

Go from two incomes to one income for a time. If your spouse is employed, his or her income (and benefits such as medical insurance) might cover basic living costs long enough to get your firm started. This may mean creating a new spending plan for your family, but adhering to new budget guidelines for a few months is a small price to pay for long-term success in a business that is all yours.

Turn your employer into a client. You might be able to start your new business as a consultant or supplier to your old firm.

Get creative about financing. You may be the best source of financing for your new business. For one thing, you won't charge yourself interest. So begin your search for start-up cash by rummaging through your personal treasury. But be wary of tapping into retirement accounts; you probably can't afford to risk these funds. Instead, design a budget that will boost your savings rate, and set that money aside in an account for your new business.