by Joshua Espina
With entrepreneurs like Elon Musk, Bill Gates, Walt Disney and many others who are reaping the fruits of the foundation they built, there’s a perception that they’ve been wealthy since the beginning. In reality, about 80% of businesses are self funded for as low as $10,000 or 500,000 pesos.
Most people seem to think that to be able to start your own business, you need to have a huge amount of zero’s in your bank account. Even if you don’t have an investor boss watching and criticizing your every business decision, it’s not a simple task to roll all the money back into the business you’ve started. Consider these 8 ways to successfully bootstrap your own business.
1. Start out with something you’re familiar with and passionate about. Starting a business in an industry you know nothing about is a one way trip to failure. It’s good to start with something you’re familiar with and if so, putting that knowledge to good use can be a stepping stone for a successful startup.
2. Look for candidates who will work for more than the money. Being an entrepreneur means handling all aspects of the business,managing employees and contracts, which can be expensive and difficult to handle alone. Finding employees who are passionate about building the business with you than earning money is key. In short, equity is the best way to assure commitment and focus.
3. Build a plan and budget wisely. Starting your own business without a plan will make you end up with little to no money left. Once the money starts to roll in, certain expenses can become an afterthought and so every expense has to be evaluated carefully. Another key is to be financially responsible.
4. Maximize what you have at the moment before getting a fancy office space. Some entrepreneurs tend to focus on things that don’t matter in the beginning, and one of those could be a fancy looking office with sleeping pods and a gaming room. Startup team members may make use of the technology we have today such as smart phones, video calls and, high speed internet to be productive. For personal meetings, co-working spaces may significantly cut costs.
5. Invest in good business relationships that will ultimately result in the best deals. Products or services with real value will always generate partners and clients that will ask for future discounts. If you barter well and practice sales talk from time to time, you will be sure to get the best deal possible especially with existing partners who understand the challenges of your cash flow.
6. Negotiate inventory management with clients for offset costs in the long run. Another tendency of new entrepreneurs is failing to realize that they can negotiate business terms. Many products can be directly shipped and many services may be asked for a retainer up front for offsetting costs.
7. Find a business model that best suits the timing of your cash flow. Finding ways to efficiently spend money will result in long-term provision. One of the biggest platforms to reduce risks and costs is the social media. It allows you to find out appealing solutions and diverse marketing approach for free.
8. Look for agencies who do goodwill projects. For those who are new to the Entrepreneurship journey, starting out will always be one of the most difficult seasons but there will always be people who are willing to lend a helping hand. One of those would be agencies who are willing to build your brand out of goodwill. Once you’ve figured out your market and your branding is on point, it will be easier for you to execute your business.
If you think that starting your own business will be a great shot, all you need is perseverance. Out there are tons of opportunities to grab, and there are groups of people who are willing to help you grow your business.
Got a business in mind now? Let’s sit down on it and discuss your business branding.