No Money? No Problem—Here Are 10 Ways to Bootstrap Your Business

By Vincent Sevilla

Steve Jobs said, "If you really look closely, most overnight successes took a long time." This is true for any business. Most successful businesses start very small, and go through a lot before they come to the attention of the public.

A very good example is the seeds sown by Jobs and Steve Wozniak to grow what would eventually become Apple Inc. The startup had no investors and made do with the little funding they could get for a VW microbus and HP calculator.

This is bootstrapping--and it is the best way to start a new business. Despite what most people think, you don’t need a lot of money to fund a startup. In fact, most successful entrepreneurs have used their own money to start their businesses.

Some people believe that bootstrapping can actually help you achieve business success. Because you have limited funds, you have to work harder and make the most of what you have. This leads to creative thinking and efficiency. The best things about bootstrapping are you don’t have to convince anyone that you have a great idea, you have total control over your business, you are not accountable to anyone.

Here are 10 ways to bootstrap your business.

How to bootstrap your business

1. Choose a field or industry you know

Thinking outside the box when it comes to business ideas is fine, but not if you don’t know what to expect. You need to have inside knowledge and good industry connections to make a success of any offshoot business. Stick to something you know and use the connections you have to make the most of your meager cash. If you deal with people and companies that know you, you are more likely to get better deals.

2. Involve people who believe in your business

Labor costs are high, so you can’t afford to hire people that expect a steady paycheck. Startups are fragile things, and everybody has to pull together to make it work. They have to understand that the business relies heavily on their hard work and performance. Offer them a stake in the company in lieu of money down. Hire people who believe you are on to something good, and that they will reap their reward in due time.

3. Plan everything down to the last cent

Plan your business on the fact you only have so much money with which to work. This will motivate you to watch every penny, scrutinize each bill, find the best deals, and make wise spending decisions. For example, you might want to go all out with a social media campaign, but don’t have the resources to do so. Instead of trying to establish a presence in all the major platforms, narrow your attention to just two or three.

4. Work from home

A fancy office may be in your future, but not yet. Take advantage of existing technology and software to work from home and collaborate with your team remotely. Many people are more productive working from home, and are willing to accept less pay for more flexibility. Most of your customers won’t care about the fancy office anyway as long as you have a kick-ass website.

5. Keep afloat by delaying payments

Timing is everything when it comes to startups. You can stretch your working capital by asking for extended payment terms from your suppliers. This is where your connections can come in handy. You can use the time to make sales so you can cover your accounts payable when they become due.

6. Do what you can yourself

You may have to take on tasks you are used to delegating to other people. You may have never written web content yourself, but that doesn’t mean you can’t do it. List down all the processes your business needs and take on as many as you can before thinking about getting outside help. You can do the bookkeeping yourself, for example, and most accounting software are user friendly. Do your research.

7. Practice economy

Shaving a few cents from everything you do or buy can make a big difference in your finances. Get secondhand whenever you can, and take advantage of free or free to try software. Make your own business cards, and go for generic over branded whenever possible. If you have to take business trips, book months ahead, and get the cheapest tickets you can find if you go by air.

8. Shell out for a good domain and incorporation

You want a clean record when to comes to your business structure and presence. “Free” is definitely going to cost you in the end. Pay for your domain outright so that you own it free and clear. You can incorporate your business yourself or hire a reputable incorporation firm to register your business for you. This is especially important if you plan to get investor funding when your business gets traction and needs expanding.

9. Stick to your guns

You may be tempted to compromise your business model or modify your product if an opportunity to make some money presents itself. It is generally better to stick to the way you do things because major changes can disrupt your operations significantly. This might affect your other clients and increase your exposure. However, if the required changes are in line with your plans of future growth, or the potential revenue is so high that it justifies hiring new people to handle it exclusively, then go for it.

10. Be persistent

You need to cultivate relationships with your suppliers. In the beginning, your needs may be so small they will not want to take the trouble of working with you. Use your charm and personality to get what you want. It will not be easy at first, but once you establish connections, they will be more than happy to accommodate you.

Bootstrapping is not for everyone. It takes a lot of guts and a strong work ethic to make it work. However, it is the best way to start a business without all the drama. Besides--it is more an adventure that way.