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.
- Internship opportunities: Avail this opportunity while hiring people for different jobs. See students in the nearby universities from social, management, marketing, and technical development. Many will be up for the work if you promise them experience enrichment of their field and passionate among them can add value to your company at a very low cost.
- Social media: The medium of social media is one of the most effective tool to reach your target customer. Marketing and branding can be made thousands of times more effective than traditional modes at a very little to no costs at all in a digital world.
- Founder plus Founder: Finding another founder who shared the same interests, value, and growth mindset with you. This will lower the burden on you alone. Two heads are better than one. Unique experiences are better for business growth. However, be cautious in choosing that person. Their level of motivation, attitude, and interests matter a lot while working with you in collaboration.
- Cut the extra budget: This is one of the tips Neil Patel mentioned in his expert advice on bootstrapping and outsourcing. Make a clear outline of all expenses and costs. Put everything on the table and then analyze critically things which are burdening the company unnecessarily.
- Where to invest: Outsourcing is just a technique to practice some frugality in terms of finances. Business gurus considered branding to be the number one priority because that would add value to the company’s name in attracting advertisers as well. A new Revenue stream is opened up for you.
- Designing, web development, and marketing: You can outsource people would be involved in designing logos, web development, of your company through online sites like Upwork. A range of offers is available for different types of work where clients can pick which is optimal for them. Moreover, this sort of work can be managed
- Connectivity management: Online free web tools like Trello can help your management department to monitor the activity of your employees directly even when they are away on some assignment. Feedback from others in the team can also be recorded more effectively on each task.
We have some questions for you to help you trigger thinking more broadly with your startup.
Questions time:
- What are your sources of financial support for your startup?
- How many are the must-have people in your team?
- What are the tasks you need to achieve?
- How can you use online tools freely available or cost-effectively for generating more revenue?
- Can you find some other founder who can lift the burden a little?
- How will you keep yourself and your team motivated during the whole discourse?
The crux:
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.