Heavy words are here. Bootstrapping and Outsourcing. They seem difficult but have very simple and valuable meanings for entrepreneurs. If you are brave enough to say no to investors and have the guts to rely on your own for kickstarting your startup, you are using the technique we call Bootstrapping.
Bootstrapping is relying on personal savings, finances, sources, and skills to begin a startup and sustaining it without involving help from the money of investors.
Outsourcing is not alienated from Bootstrapping. It is more of skillfully using resources for completing certain tasks by people without hiring them. Work is distributed based on projects and they are paid accordingly. Thus, it is beneficial in the management, operations, and finances of the company to survive through the struggles startups face in the beginning.
Nobody can deny that it is a daunting task, but the rewards are equally undeniable. Big fishes like Microsoft and eBay also have worked on these patterns. Of course, uncertainty is always lurking around can drive you away. But don’t.
There are five compelling reasons to sail on this venture.
First, you are the sole owner of revenue generated by your company. In the absence of other investors, worries of paying them back would be over. Besides financial freedom, you would have complete freedom to make changes in strategy, operations, and even marketing decisions.
Secondly, a Creative orientation of the company. Creativity is an important ingredient for boosting successful startups. Bootstrapping and outsourcing would allow you to have more creative decisions playground where you can check the validity of different ideas on hit & trial method. This way you can have more improved and better ideas for your ultimate product.
Additionally, motivation drive would be fueled up to the sky. When you tell your team, we are on our own and they have a little space to make blunders. This will make them conscious, and more inspired to carry out further activities related to your startup more effectively.
Let’s navigate through the process of Bootstrapping and outsourcing with some elaboration.
We have some questions for you to help you trigger thinking more broadly with your startup.
Though it is encouraging to set on your own and it sounds adventurous as well, but it is wise to keep some extra cash for an emergency or unforeseen crisis which can disturb the smooth workflow. Remember, things you will learn in this venture will groom you as a businessman and in your journey of entrepreneurship.