Well, I've been reading up on bootstrapping for a while now, and decided to write my outtake on everything I've learned. I am breaking it up into 8 parts on my blog, but will post an overview of all 8 posts in this thread here. You can read the full detailed sections on my blog if the overviews aren't enough for you. (help me out here, I'm trying to build up a good blog with a lot of useful information and at the same time, give WickedFire some useful information as well).
Strategy #1: Find the right product or service
The title explains itself. You need to find the perfect product or service to offer. This is the hardest part. If you have done arbitrage, then you know how the process goes. If you are working on a bigger scale then just small websites like that, and actually have a business to promote, it can get a little tougher.
Bootstrappers will know how to look past the small gain products/services, and dig a little deeper to the real big solutions. One tip to find out if your product or service is going to turn a profit is to grab your phone and call 50 business owners/potential clients, and pitch your idea. If you can get them to bite, you know it will work. If not, then all you wasted was a little time and a phonebill.
Strategy #2: Immerse Yourself
Whatever your start-up method, all of the phone calls to prospective customers might seem never-ending, but it is all worth it. This activity is the bedrock of bootstrapping. Doing some basic research of your niche market will help as well. Find out what different methods you can cover that most other businesses are not. Figure out what to do to make your company BETTER than the rest, and offer what others don't. Fill their mistakes, and you will do well. Immersing yourself is a big process of gaining knowledge in your business. You need to work to make money, and you need to learn in order to be successful. Trial and Error.
Strategy #3: Become the Expert Yourself
You need to beware of the experts. Believe half of what you see and none of what you hear. This is by far the greatest quote ever when it comes to Becoming the Expert instead of Using the Expert. Most people in your field who claim to be experts generally are only giving off secondhand knowledge. Things you could learn yourself, for free. They also are only following the trends, and might not see what the bootstrapper sees in a business opportunity. Therefore, becoming the expert yourself will save you a lot of money in having someone give you a consultation that is full of crap.
Strategy #4: Think in Black and White
Most business schools make things very complicated in running a business, and generally just 'fluff' everything to make themselves seem more knowledgeable (ie: Strategy #3). To the bootstrapper, the time and money wasted on being distracted by things is very costly, so the bootstrapper must think only in black and white. Put your business needs in primary colors and focus on the solid's and not the watered down scenerios. Staying focused and making things run as smoothly and simple as possible is key for the bootstrapper.
Strategy #5: Get Read for Rough Times
Noone said life was easy, right? Well, noone said that business is easy either. "Too much money in the beginning makes you stupid" says Jon Nordmark, the founder of eBags.com and it is very true, even if you do not want to admit it. Do it from the ground up - start with zero and you will be more pleased then if you got a big loan from a lender. You should know that you will not wake up the second day of business and be rich, but you will have that urge in your gut to push forward, and thats what a real bootstrapper needs. The drive to make it. So, "too much money in the beginning makes you stupid" and makes you not work as hard as you would without that cushion to fall back on.
Strategy #6: Don't Buy an Existing Business
Why? Simple, the existing workers already are used to running things "their way". I don't mean it as they run the shop, but they know how the previous owners ran things and they are usually set in their ways. Getting a fresh team of people behind your idea to work for you, will work out way better then trying to convince a group of people to change their views and follow you.
Strategy #7: Consider Carefully Before Joining With A Partner
Joining with a partner could do great for your business, but in most cases, it does very poorly. You may have a great idea, and a set mind on how to do things, and if your partner wants to be difficult, you are in for a slow start of your business. Starting by yourself insures 2 things: 1.) You do what you want, how you want. 2.) You own the company and all profits are going to you only. I am not saying to NOT partner up, but choose wisely if it is the best option for you currently. Maybe you can start solo, and then once the load gets to be too much, bring in an extra helping hand to help with day to day operations.
Strategy #8: Just Jump In!
There comes a time when all of the planning, and thought needs to be pushed to the side, and you need to get in the trenches and actually do some work. That is when you really learn everything needed to grow a successful company. You can plan for a year, and then start, or you can plan for a day and start now, so when that year is up, you are turning huge profits and your business is growing nicely. Sure, there are bumps and bruises to face, but if you are not ready to get dirty, what the hell are you here for anyways?
As a bonus to this post, I am posting the 14 keys that the founder of PrintingForLess.com said was the steps he used to become a successful bootstrapper.
Strategy #1: Find the right product or service
The title explains itself. You need to find the perfect product or service to offer. This is the hardest part. If you have done arbitrage, then you know how the process goes. If you are working on a bigger scale then just small websites like that, and actually have a business to promote, it can get a little tougher.
Bootstrappers will know how to look past the small gain products/services, and dig a little deeper to the real big solutions. One tip to find out if your product or service is going to turn a profit is to grab your phone and call 50 business owners/potential clients, and pitch your idea. If you can get them to bite, you know it will work. If not, then all you wasted was a little time and a phonebill.
Strategy #2: Immerse Yourself
Whatever your start-up method, all of the phone calls to prospective customers might seem never-ending, but it is all worth it. This activity is the bedrock of bootstrapping. Doing some basic research of your niche market will help as well. Find out what different methods you can cover that most other businesses are not. Figure out what to do to make your company BETTER than the rest, and offer what others don't. Fill their mistakes, and you will do well. Immersing yourself is a big process of gaining knowledge in your business. You need to work to make money, and you need to learn in order to be successful. Trial and Error.
Strategy #3: Become the Expert Yourself
You need to beware of the experts. Believe half of what you see and none of what you hear. This is by far the greatest quote ever when it comes to Becoming the Expert instead of Using the Expert. Most people in your field who claim to be experts generally are only giving off secondhand knowledge. Things you could learn yourself, for free. They also are only following the trends, and might not see what the bootstrapper sees in a business opportunity. Therefore, becoming the expert yourself will save you a lot of money in having someone give you a consultation that is full of crap.
Strategy #4: Think in Black and White
Most business schools make things very complicated in running a business, and generally just 'fluff' everything to make themselves seem more knowledgeable (ie: Strategy #3). To the bootstrapper, the time and money wasted on being distracted by things is very costly, so the bootstrapper must think only in black and white. Put your business needs in primary colors and focus on the solid's and not the watered down scenerios. Staying focused and making things run as smoothly and simple as possible is key for the bootstrapper.
Strategy #5: Get Read for Rough Times
Noone said life was easy, right? Well, noone said that business is easy either. "Too much money in the beginning makes you stupid" says Jon Nordmark, the founder of eBags.com and it is very true, even if you do not want to admit it. Do it from the ground up - start with zero and you will be more pleased then if you got a big loan from a lender. You should know that you will not wake up the second day of business and be rich, but you will have that urge in your gut to push forward, and thats what a real bootstrapper needs. The drive to make it. So, "too much money in the beginning makes you stupid" and makes you not work as hard as you would without that cushion to fall back on.
Strategy #6: Don't Buy an Existing Business
Why? Simple, the existing workers already are used to running things "their way". I don't mean it as they run the shop, but they know how the previous owners ran things and they are usually set in their ways. Getting a fresh team of people behind your idea to work for you, will work out way better then trying to convince a group of people to change their views and follow you.
Strategy #7: Consider Carefully Before Joining With A Partner
Joining with a partner could do great for your business, but in most cases, it does very poorly. You may have a great idea, and a set mind on how to do things, and if your partner wants to be difficult, you are in for a slow start of your business. Starting by yourself insures 2 things: 1.) You do what you want, how you want. 2.) You own the company and all profits are going to you only. I am not saying to NOT partner up, but choose wisely if it is the best option for you currently. Maybe you can start solo, and then once the load gets to be too much, bring in an extra helping hand to help with day to day operations.
Strategy #8: Just Jump In!
There comes a time when all of the planning, and thought needs to be pushed to the side, and you need to get in the trenches and actually do some work. That is when you really learn everything needed to grow a successful company. You can plan for a year, and then start, or you can plan for a day and start now, so when that year is up, you are turning huge profits and your business is growing nicely. Sure, there are bumps and bruises to face, but if you are not ready to get dirty, what the hell are you here for anyways?
As a bonus to this post, I am posting the 14 keys that the founder of PrintingForLess.com said was the steps he used to become a successful bootstrapper.
- Find a niche within a niche.
- Choose a name that instantly means something to the clients.
- Provide exceptional customer service.
- Big bucks are made in simplifying, not complicating a business process.
- Use the press to broadcast your innovation.
- Think conterintuitively.
- Keep a hawkish eye on your receivables management.
- Get customers to pay up front whenever possible.
- Train your staff to be perfect handlers of customers.
- Try to ride a trend, rather than create one yourself.
- Don't offer drone jobs to great people.
- Get everyone to think like the owner concerning expenses.
- Maximize experimentation by embedding it in the company.
- Keep a dog in the office - it's great for morale.
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