Bootstrapping has an unparalleled benefit. It gives one the complete control of the finances, with no debts to pay off. However, it demands every single cent on the return to be re-invested, to uplift the business. This can be a nightmare as dealing with the empty pockets for a few months on the stretch is not that easy.
The following few points are based on the tested ideas by some very successful entrepreneurs in businesses, who went to the extreme edge of bootstrapping their business.
Negotiate On The Legal Fees:
The companies have done that in the past. A few start-ups with a good project model have even been able to defer the legal fees for the first few years of launch. The lawyers can be convinced about collecting the fees only after the firm has made a specific return on the investments. The least that can be done is getting some significant discounts on the legal charges.
Invest On Used Machines:
The brand new machinery and resources for the start-up can eat up the major chunk of your investment. Instead, look for the options where the second hand products are offered in a usable condition. If not completely, the major part of the start-up can run on these resources. This will incur a big saving on the budget. Another alternate is getting the help of the well placed friends in the known companies. Most of the well known companies offer the corporate discounts. Check out if that works well for you.
Share The Office Space:
Renting a new office can be very costly, especially when there is no loaning involved. This office, if rented with an existing firm, utilizing just the extra space they have, can be a much cheaper option. Surprisingly, this will save a good deal on the time too. You get the already set up space with the needed facilities, at an affordable cost.
One valuable aspect of sharing the space is the chance of meeting the other founders, and witnessing their best practices. You may end up winning a partner or an alliance too.
Reach Out The Reporters Yourself:
At the initial stages of the start-up, it can be really challenging to spend the hard saved money on marketing and advertising. Instead, reach out the reporters in person to make the announcements public. This will save a very substantial amount which was otherwise to be spent on PR firms. The local magazines and the newspapers will be more than happy to fill their extra space with something new in launch.
Rule Out The Recruiters Mediation:
Hiring the talent does not mean you need to go through the recruiters and job sites. Visit the college campuses and the universities to furnish your requirements. You will be amazed to find the response. This will again be a considerable saving which was spared to be spent on recruitment agencies. Also, the candidates will be interviewed fresh hand as per your standards. This will also eliminate the possibility of hiring a wrong candidate. Once established, the formal verifications can be handed over to the third party recruitment boards at a later stage.
Get Discounts On Server Costs:
Most of the companies like Microsoft, Rackspace and Amazon Web Services offer promotional start-up prices. These may be published during the time you are looking for the deals, or you may have missed the advertisements. When checking for the servers, it is better to get in touch with these brand names, since they offer the products and services at a better price. It will be more cost effective when compared to buying from the small retailers.
Build Website For Free:
While you need a professional website at a later point of time, use a free one to start with. It will be an excellent option to get you started at no cost at all. Shift over to your own design once the returns on the investment look promising.
And please do not forget about the most important part of running a business that is tax planning. You can also consult with a tax consultant as well to get Tax planning & Structure services if case you are concerned about it.While you need a professional website at a later point of time, use a free one to start with. It will be an excellent option to get you started at no cost at all. Shift over to your own design once your financial management software suggest the returns on the investment look promising.