Bootstrapping may have multiple meanings for people across the world, but for a majority of entrepreneurs, it’s the struggle days. For most of them, it means living on burgers, cutting on fashion and other luxury expenses. These are the days of self-funding or bootstrapping your startup.
So being an entrepreneur, your first option is bootstrapping your startup. You are bound to bootstrap till some angel looks the potential behind your idea. To show them what you’ve got, you need to self-fund your startup initially.
So have you figured out the best method of bootstrapping that works for you? Whatever be your answer, do not forget to consider these very fresh ways of self-funding your startup.
Raise from substitute sources
Not all the entrepreneurs have pursued a well-paying job before deciding their own venture. That means not all of them are heavy in the pockets. That why even the brightest of ideas need to look for raising funds to start. Hoping for the banks for your small startups can come as a disappointment. Banks are reluctant to lend to small businesses. Even if you have an idea of the potential of another Facebook, what matters to the banks is your FICO score.
Having caught up with it, you should better look for bank substitutes. One of the best fresh options would be peer to peer lending. It can be a bit more expensive than low-interest bank loans but is better than other costly lenders. Once you start generating some revenue, another option can be borrowing against receivables. Yes, it requires you to pay on a daily and weekly basis. Now for a more flexible option, you can go with Revenue-based financing.
Target the targeted loans
The government runs numerous programs to support the startups owned by backward and minority communities. But that’s only when you have established your startup established. Initially, it would be tougher than you would think. Now, what can be the other option? There are some local community organisations, community banks, and even online lenders for underserved. An entrepreneur initially is an underserved and can go for these lenders.
Go to clouds
Two decades ago, startups used to need ample funds to get going. That’s not the case now. You can kickstart your venture with a lot less capital and that why you are at the best times for startups.
An entrepreneur’s biggest concern when bootstrapping is to start the venture with least of investment required. Now you’ve got the cloud to your rescue. A lot of cloud-based software and infrastructure are present, and you don’t need to run your own server. A majority of startups today evolve in the clouds. Also, platforms as a service can help your marketing. You now can run your startup quickly with the least of funds.
Don’t break up with the day job
So now we know that we don’t require a lot of funds to start today. But still, we can’t start without any fund. Now what you can do to meet that little fund requirement is keeping your day job. You can work your days off and give your nights to your startup. Do this until the time you start generating good numbers with your startup. This is the real bootstrapping and entrepreneurs are bound to have some sleepless nights.
Self-funding can be a lot more beneficial, and entrepreneurs shouldn’t quickly run for funds. Bootstrapping your startup means you can take all the decisions independently and can make your startup an active and lean one. Raising the seed fund late lets you establish as a profitable model. Then you are better prepared to target the biggest fishes in the ocean. You would have better chances of raising the great sum.