Bootstrapping your un-sexy startup

Filed in archive Bootstrapper Tips on December 8, 2007

Alan Wilensky, an east coast transplant trying to launch a tech startup in Silicon Valley, talks about what it takes to bootstrap an un-sexy venture with little or no funding.

Wilensky's venture is called ThruDispatch, a mobile messaging system for independent towing operators, mobile locksmiths and mobile glass repair services that he has been told is a bit too blue-collar for trendy Bay Area investors.

Here are some ideas both from Alan's experiences and from my own observations for down-to-earth startups that just don't have the flash to draw big investment:

• Tap your local incubator for talent. Alan had some hysterical experiences here, but seriously an effort to find cheap help from hungry fellow entrepreneurs can be worth your while...so long as they're dependable.
• Go back to school. Visit your local college or university, particularly the computer lab if your startup is high tech, to see about recruiting cheap or even free labor with the idea of future reimbursement and experience as an incentive.
• Use available technology. Make sure the stuff you need to provide your product or service doesn't already exist somewhere before spending money on creating a prototype. Remember, you can develop new software and other equipment to tweak your operations once you've got some customers and some cash flow.
• Get a job. A side job like consulting to bring in the money you need for launching your venture can be crucial. If you can't start your business without at least a little funding you'll have to take this route or get a small business loan.
• Start with cash flow. Though Alan is working to develop a prototype, it may be helpful to consider whether any part of your product or service could be delivered without any beginning investment and simply take it from there. Use cash flow from the initial service business to build your tech startup and pay for additional development.

I'd like to hear from any other tech startups out there. If you've got some input leave it below or link to this post with a response, send me an e-mail and I'll link back to you in return.