10 ways to bootstrap your business

Filed in archive Bootstrapper Tips on August 30, 2007

Can bootstrapping be reduced to a 10 step program?

Inspired by a thread on the YoungEntrepreneur Forums, Evan Carmichael of EvanCarmicael.com made this list of 10 ways to bootstrap your business most of them probably familiar to regular readers here.

They include:

1. Work from home to save on rent, commuting costs, and you can deduct some of your home costs for tax purposes.

2. Get customers to pay upfront by selling membership, subscriptions, gift certificates, coupon books and other initiatives to get their money now and deliver later.

3. Lease or rent equipment and other major purchases instead of buying. Always try to push off payment to the future.

4. Get used instead of new equipment to save on the expensive price tags.

5. Barter your products / services in exchange for something you really need.

6. Get free publicity by contacting reporters with a story idea instead of buying expensive advertising.

7. Do a side job to make sure you have an income that lets your business survive in the early days.

8. Give sweat equity to employees / partners instead of paying a salary.

9. Take as little as you can out of the business and focus on growing the company so you can bring in more cash in the future.

10. Manage your cash flow and make sure there is more coming in than going out before you start spending money

Also check the above YouTube video clip supplied by one of the forum commenters on the Darden School of Business at the University of Virginia which mentions bootstrapping a little under five minutes in.