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Starting a business takes guts, even in the best of times. Doing so without money takes the fear factor to a whole different level. The good thing is that you are not alone in trodding down this beaten path of financing your businesses without investors. One Gitnux survey found that 80% of companies are bootstrapped.
However, bootstrapped businesses are also more successful in the short and long term, with 45% of companies raising over $100 million in financing. But to hit these metrics, you need to focus on key areas and have a different mindset.
Here are the top three sustainable bootstrapping techniques for startups.
A research article by Bankrate indicates that 78% of all startup entrepreneurs reinvest profits in business expansion. But it’s easier said than done; think of it as though you are scaling through the highs and lows of the Himalayan peaks, says Justin Levy, the CEO of iBusiness Funding.
While this method can impede quick growth, it creates the habit of financial discipline and introduces cost-effective techniques to business issues.
Ryan Smith, a Harvard Business Review contributor, puts it this way: Sometimes it’s only when the going gets tough that we find the gears to push us into overdrive - this is what bootstrapping does for you. Here are other benefits of bootstrapping;
One of the most overlooked yet very powerful ways to grow startup companies without investing is organic growth. According to Deloitte, organic growth is the “lifeblood” of the organization, it is a must-have in order to be successful.
However, despite the important role that organic growth plays in the success of the business, less than 30% of the startups currently scan and look for new growth opportunities, according to a survey conducted by McKinsey some time ago. Listed below are a few reasons why you should give more attention to organic growth in your startup.
To succeed in organically growing your startup, be willing to play the long game. Experiment with new business models, and leverage inbound and content marketing to drop your cost-per-lead.
Don’t forget to experiment with automation, new pricing models and emerging trends to outshine your established competitors. Online survey tools like BuzzSumo can show you what’s already on the market and how to deliver better products or services.
Cash flow management is the cornerstone of business success, especially when bootstrapping. Without investors, entrepreneurs need to put extra effort towards building a healthy and dynamic cash flow from the beginning. This means:
Managing your startup's growth minus major investors might seem daunting, but with patience and the right approaches, your business will be successful in the long term. Implement the above bootstrapping techniques for sustainable and independent startup success.
Starting a business takes guts, even in the best of times. Doing so without money takes the fear factor to a whole different level. The good thing is that you are not alone in trodding down this beaten path of financing your businesses without investors. One Gitnux survey found that 80% of companies are bootstrapped.
However, bootstrapped businesses are also more successful in the short and long term, with 45% of companies raising over $100 million in financing. But to hit these metrics, you need to focus on key areas and have a different mindset.
Here are the top three sustainable bootstrapping techniques for startups.
A research article by Bankrate indicates that 78% of all startup entrepreneurs reinvest profits in business expansion. But it’s easier said than done; think of it as though you are scaling through the highs and lows of the Himalayan peaks, says Justin Levy, the CEO of iBusiness Funding.
While this method can impede quick growth, it creates the habit of financial discipline and introduces cost-effective techniques to business issues.
Ryan Smith, a Harvard Business Review contributor, puts it this way: Sometimes it’s only when the going gets tough that we find the gears to push us into overdrive - this is what bootstrapping does for you. Here are other benefits of bootstrapping;
One of the most overlooked yet very powerful ways to grow startup companies without investing is organic growth. According to Deloitte, organic growth is the “lifeblood” of the organization, it is a must-have in order to be successful.
However, despite the important role that organic growth plays in the success of the business, less than 30% of the startups currently scan and look for new growth opportunities, according to a survey conducted by McKinsey some time ago. Listed below are a few reasons why you should give more attention to organic growth in your startup.
To succeed in organically growing your startup, be willing to play the long game. Experiment with new business models, and leverage inbound and content marketing to drop your cost-per-lead.
Don’t forget to experiment with automation, new pricing models and emerging trends to outshine your established competitors. Online survey tools like BuzzSumo can show you what’s already on the market and how to deliver better products or services.
Cash flow management is the cornerstone of business success, especially when bootstrapping. Without investors, entrepreneurs need to put extra effort towards building a healthy and dynamic cash flow from the beginning. This means:
Managing your startup's growth minus major investors might seem daunting, but with patience and the right approaches, your business will be successful in the long term. Implement the above bootstrapping techniques for sustainable and independent startup success.
