Advice on Bootstrapping your Small-Business to Success
When you hear how small business owners launched their businesses, there tends to be a common theme: they bootstrapped their way to success.
Very few startups ever secure traditional financing or find investors ready to throw wads of cash their way. That being the case, you may wonder how any business ever gets off the ground. Well, as my mother used to say, “Where there is a will there is a way.”
Here Are Some Ways To Bootstrap To Success!
Begin your journey by checking your piggy bank. Take a serious look at your personal financial situation. Try working under the assumption that you plan to start your business as a full-time endeavor, therefore you’ll need enough money to pay your living expenses for a least three months, but preferably six. Whatever you determine your monthly expenses to be multiply that by 1.25% to cover unforeseen miscellaneous expenses.
Now that you have your base, research operating costs for comparable types of business. SCORE (www.score.org), a free resource that can help you research and analyze related financial models. They can also help you write an initial business plan for your company. Trade associations and other business owners in related fields can also be excellent resources.
Next, calculate your anticipated costs. Because I don’t know what type of business you’re planning to start, it’s impossible to provide a considerable amount of detail for you. A home-based, service business is going to require far less capital than launching a new restaurant. So if a restaurant is your dream, consider scaling back by starting a food service business from your home. However, don’t lose sight of your big dream.
A word of caution: Don’t be penny wise and dollar foolish. In other words, don’t skimp on the important start-up costs such as getting good legal and accounting advice. Spending money now to make sure things are done correctly can save you thousands down the road — or even prevent a business failure.
Finally, keep this in mind — calculating start-up costs is part science and part intuition. But remember, if it’s your dream don’t make excuses, find a way to make it happen.
