Additional Tips for Bootstrappers
In addition to recent advice to bootstrappers, it is worthwhile to visit and gather insights from a classic post of Guy Kawasaki about the Art of Bootstrapping.
Focus on cash flow, not profitability. The theory is that profits are the key to survival. If you could pay the bills with theories, this would be fine. The reality is that you pay bills with cash, so focus on cash flow. If you know you are going to bootstrap, you should start a business with a small up-front capital requirement, short sales cycles, short payment terms, and recurring revenue. It means passing up the big sale that take twelve months to close, deliver, and collect. Cash is not only king, it’s queen and prince too for a bootstrapper.
Another good advice for entrepreneurs is focusing on your needs and setting aside your wants, initially. Some businessmen who started reaping profits from their ventures think they can spend right away. That is a classic business decision mistake for many inexperienced small business owners. Stick to your budget and limit your expenses on important matters. If you’re currently home-based, do not get a bigger office yet! Conserve your cash all the time.
Check out other blogs as BootStrapMe shares some bootstrapping tips, particularly about using early customers as fund sources. Also, Businessfund reveals 27 tips on how to bootstrap.
